INVENT A NEW WAY OF LIVING, 2020 TOGETHER · 2021. 4. 27. · INVENT A NEW WAY OF LIVING, TOGETHER...

INVENT A NEW WAY OF

LIVING, TOGETHER

ANNUAL FINANCIAL

REPORT 2020

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SOMFY SA50, AVENUE DU NOUVEAU-MONDE

BP 152 - 74307 CLUSES CEDEX – FRANCETEL.: +33 (0) 4 50 96 70 00www.somfy-group.com

EN_SOMFY_COUV_DDR_2020_217x280_Dos9.5mm+5.indd Toutes les pages 15/03/2021 10:52

2SOMFY – ANNUAL FINANCIAL REPORT 2020

CONTENTS

01PRESENTATION OF THE GROUP

JointinterviewoftheManagementBoard4Profile6Investorrelations16Organisation17

02MANAGEMENT BOARDMANAGEMENT REPORT

Highlightsoftheyear20Presentationoffinancialstatements22Stockmarketperformance23Post-balancesheetevents23Outlook24Riskmanagementandinternalcontrol25Non-financialstatement31Informationonresearchanddevelopmentactivities31Listofexistingbranches32Valueofintercompanyloansgranted32Informationonpaymentterms32Informationonthedistributionofsharecapitalandholdings

33

InformationontransactionsperformedbyDirectorsduringthefinancialyear

35

Approvaloftheparentcompanyandconsolidatedfinancialstatementsfortheyearended31December2020

36

Informationonnon-deductiblecharges36Allocationofnetprofit36CombinedGeneralMeetingof2June202136Appendix:SomfySAfinancialresultsforthelastfiveyears

42

03NON-FINANCIAL STATEMENT

Presentationofthebusinessmodel44PresentationoftheGroup’ssustainabledevelopmentstrategy

46

Presentationofnon-financialrisks47Somfy’sresponsestonon-financialrisks49Methodologynote63

04REPORT ON CORPORATE

GOVERNANCE

Corporategovernance66Informationonremuneration74Informationonelementsliabletohaveanimpactintheeventofapublicoffering

95

ObservationsoftheSupervisoryBoardontheManagementBoard’smanagementreportandthefinancialstatementsforthefinancialyear

95

05CONSOLIDATED FINANCIAL

STATEMENTS

Keyfigures982020highlights102Post-balancesheetevents103Consolidatedincomestatement105Consolidatedstatementofcomprehensiveincome106Consolidatedcashflowstatement107Consolidatedbalancesheet-Assets108Consolidatedbalancesheet-Equityandliabilities109Consolidatedstatementofchangesinequity110Notestotheconsolidatedfinancialstatements111

06PARENT COMPANY FINANCIAL

STATEMENTS

Incomestatementfortheyearended31December2020

154

Balancesheetat31December2020155Proposedallocationof2020profit155NotestotheSomfySAfinancialstatements156

07LEGAL DOCUMENTS

StatutoryAuditors’reportontheparentcompanyfinancialstatements

172

StatutoryAuditors’specialreportonregulatedagreements

176

StatutoryAuditors’reportontheconsolidatedfinancialstatements

177

ReportbyoneoftheStatutoryAuditors,appointedasIndependentThirdParty,ontheconsolidatednon-financialstatement

180

StatutoryAuditors’reportontheauthorisationtoallocatesharepurchaseoptions

183

DraftresolutionstotheCombinedGeneralMeetingof2June2021

184

StatementfromtheindividualresponsiblefortheAnnualFinancialReport

188

08RECENT EVENT

Pressreleaseof20April2021189

SOMFY – ANNUAL FINANCIAL REPORT 2020

01

3

PRESENTATION OF THE GROUP

JointinterviewoftheManagementBoard4

Profile6

Investorrelations16

Organisation17

01 PRESENTATION OF THE GROUP

SOMFY – ANNUAL FINANCIAL REPORT 2020 4

JOINT INTERVIEW OF THE MANAGEMENT BOARD

How is Somfy doing today?

J.G.D: Somfy is doing very well following a solid performance in 2020. It was a year of strong contrasts, with the first half of the year marked by the shutdown of our factories and inbound logis-tics for more than three weeks, followed by their gradual restart. The second half of the year proved completely different and saw intense activity due to the reallocation of consumer spending and the home playing a larger role in people’s lives. This interest is supported by the government’s stimulus plan, which encourages everyone to buy products that improve the energy efficiency of their homes. This performance was therefore driven by factors related to the health crisis and by structural elements, such as digitalisation and the energy performance of buildings. What’s your take on the main financial indicators?

P.R: All our indicators have improved. Our sales, reflecting our level of activity, reached €1.3 billion, an increase of 6.1% on a like-for-like basis. Following a decline in the first half of 2020, they soared by 20.1% in the second half. Our current operating margin rose sharply to 20.7% of sales. This level is partly due to non- recurring savings, made pre-emptively to anticipate the impacts of the health crisis, or constrained, such as the inability to travel. Finally, our net financial surplus reached €518 million, an increase of €200 million.

J.G.D: Our good financial health gives us room to manoeuvre and will benefit our shareholders and employees in France through the profit-sharing and incentive bonus. To prepare for the future, we will invest in our manufacturing facilities by accelerating our digitalisation through the roll-out of a new ERP (SAP) and by increasing our production capacities, particularly in France.

Unprecedented in many ways, 2020 was a year of growth for Somfy. As a benchmark in Smart Living, the Group has benefited greatly from renewed interest in comfort in the home while at the same time advancing its strategic projects. Let’s review the year with Jean Guillaume Despature, Chairman of the Management Board of Somfy, and Pierre Ribeiro, member of the Management Board and Chief Financial Officer.

Jean Guillaume DESPATURE,Chairman of the Management

Board of Somfy

We are confident in the future because Somfy has solid fundamentals. Our future growth will be driven by digitalisation and the decarbonisation of the building industry.

JOINT INTERVIEW OF THE MANAGEMENT BOARD

In which markets did Somfy perform well?

P.R: Most regions posted growth in 2020. This was particularly true of Eastern Europe and Central Europe, which posted remarkable performances with growth of 23% and 12% respectively. This was not a simple catch-up effect following the first lockdown but a sustainable recovery. Although more heavily impacted by health restrictions, other regions such as France and Africa & the Middle East held up well. Only Southern Europe, Latin America and Asia-Pacific posted declines. Dooya, our Chinese subsidiary positioned on entry-level and white label solutions, was very successful outside China.

How do you explain this level of performance?

P.R: It was stimulated by buoyant demand across all our markets. With this crisis, consumers have refocused on the important things in life: family and the home. Prompted by mild weather in the spring of 2020 and the fear of letting installers into their homes, they turned to exterior products connected with solar protec-tion, such as motorised blinds for patios, pergolas and verandas. Responding to such strong demand from customers around the world has been a real challenge, which we have met successfully.

J.G.D: The dedication of our employees enabled us to continue operating to serve our customers at all times. This was true of the IT teams, who helped 90% of our staff to switch to remote working in just a few days. In Operations, we successfully relaunched our production lines, thereby gaining the trust of operators. We were then able to establish sustained rates and break production records. The Purchasing teams maintained the continuity of our

severely tested supply chain by leveraging our global presence. Our collective strength has shown our customers that they can count on Somfy.

Have you been able to roll out your Ambition 2030 plan as scheduled?

J.G.D: With Ambition 2030, we are committed to an in-depth review of our value proposition in our core business in order to seize the opportunities created by digitalisation and to better support our customers at every stage of their journey. The recent acquisition of Repar’stores illustrates this. With this new expertise, we are providing a complementary service while also meeting the ever increasing environmental expectations of our customers.

P.R: 2020 was also the year we rolled out our new organisation. Its purpose is to create a more integrated company in order to reinforce excellence in each of our business lines, increase our agility and customer focus, and facilitate digitalisation. More than an organisation, it establishes a new way of working and a stronger and more unified corporate culture.

How are you preparing for the future?

J.G.D: Our model is based on solid fundamentals. In the future, our growth will be driven by digitalisation and the decarbonisa-tion of the building industry. Digitalisation creates new use cases for our customers and in the relationship we build with them. The decarbonisation of the building industry, driven by regulations and greater public awareness, opens up new perspectives. We are working on an ambitious plan to reduce the C02 emissions gene-rated by our activities and to identify the emission savings made by our customers through our solutions. We are determined to make sustainability a lever for differentiation and sustainable growth.

Pierre RIBEIRO, member of the

Management Board and Chief Financial

Officer

Most regions posted growth in 2020. This was particularly true of Eastern Europe and Central Europe, which posted remarkable performances with growth of 23% and 12% respectively over the year.



Open your front door remotelyMake sure your children are home from school Adjust lighting to the intensity of natural lightVentilate your home in just a click

—

As the preferred partner for opening and closing automation in homes and commercial buildings, Somfy makes a new way of living possible, ensuring comfort, security, energy savings, and well-being.

By leading the world in its sector and pioneering home automation and motorisations for 50 years, the French Somfy Group is a benchmark in Smart Living. Somfy Smart Living is useful, simple, reliable, and accessible. The Group is a forerunner of new uses and the future of housing technologies. To achieve this ambition, Somfy is digitalising its offer and innovating and consolidating its world leadership. It is open to all technologies and all stakeholders in Smart Living by forging value-creating partnerships.

Today, the need to feel good at home is even stronger. The home has become a refuge, a sound investment. Somfy provides everyone with the best-suited solution for their home and equipment. It also develops efficient and sober solutions to consume less and increase energy efficiency. This is who it is and how it contributes to a sustainable world.

Pr

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PROFILE

KEY FIGURES

SOMFY AT A GLANCE

×

17 R&D centres around the world

2,210portfolio patents

In 2020, 4,000 people were members of My Somfy Lab (Explore & Test) and more than 6,012 contributions were

made to projects

27 patent

applications

5 TYPES OF APPLICATIONS

Shutters and solar protection

Connected Home

Security

Interior blinds and curtains

Access control

SALES

€1,257.1M

SALES GROWTH

+6.1%

on a like-for-like basis compared to 2019

13 COMPLEMENTARY BRANDS

CURRENT OPERATING

RESULT

€260.7M


7 SOMFY – ANNUAL FINANCIAL REPORT 2020

A WORLDWIDE PRESENCE×

LATIN AMERICA70

NORTH AMERICA150

OUR LOCATIONS

114subsidiaries

8manufacturing sites

58countries

80logistics

centres and warehouses

6,500 employees



FRANCE

2,200

NORTHERN EUROPE

200

CENTRAL EUROPE

450

SOUTHERN EUROPE

565

AFRICA & THE MIDDLE EAST1,490

EASTERN EUROPE810

ASIA-PACIFIC565



ACCELERATE THE ROLL-OUT OF 2030 AMBITION

×In 2020, Somfy faced the crisis while seeing where it wanted to be in the

future by rolling out transformative projects. Confident in its strategic choices, the Group has accelerated the roll-out of its 2030 Ambition.

A guide that serves trust and performance.

pioneer for 50 yearsAs a major stakeholder in the “smart home” sector, Somfy is the preferred partner for opening and closing auto-mation in homes and commercial buildings. Its pioneering spirit is at the heart of the Group’s DNA; a Group that has shown boldness since its creation. Creator of the first motor for blinds, Somfy has rapidly expanded interna-tionally. By occupying time slots on television, it has benefited from strong brand awareness that has rolled over to the entire roller shutter industry. After integrating radio technologies into its solutions to make installing and using motorisations easier, Somfy launched the first home automation box, making it a pioneer in this market and giving the connected world access to automation.

A solid roadmap Working on the 2030 ambition has made it possible to revisit these fun-damentals while adapting to very

changing markets. Faced with signifi-cant transformations in the construc-tion industry, intensifying competition and digitalisation impacting lifestyles, Somfy is constantly reinventing itself. Increasing agility is key to staying ahead of the game and consolidating fundamentals. This observation led to the development of its 2030 Ambition project and the roll-out of a new organ-isation in early 2020. Somfy supports manufacturers and installers in this acceleration and digital transforma-tion, while seizing opportunities linked to e-commerce. The year 2020 largely highlighted these developments and reinforced the role of the home as a “refuge” and place of investment. As such, it revealed fundamental trends and the full potential of Somfy’s core business. Perfectly positioned in home renovation, anticipating new chal-lenges contributes fully to its current and future performance.

Jean Guillaume Despature, Chairman of the Management Board

“This crisis has strengthened Somfy's model in the long term. For these reasons, the Group is accelerating the roll-out of 2030 Ambition with challenges shared by all and a new organisation to develop its expertise and foster employee growth. To create positive collective momentum.”

STRATEGY



Rising Value to Cus-tomers

RISING VALUE TO CUSTOMERSSomfy has made creating partnerships one of the pillars of its strategy, by forging alliances with

leading manufacturers in the home—lighting, electricity, and more—and with key stakeholders in new technologies. This is the essence of the partnership between Orange and Somfy. Through this alliance,

Livebox users equipped with a Somfy home automation box, control their roller shutters and motorised blinds from the Orange “Connected Home” application.

Forward-lookingin Smart Living

FORWARD-LOOKING IN SMART LIVING Remote working, deliveries, and home support services...New needs are emerging on how people experience their home. The health crisis has reinforced these needs as well as the importance of

feeling good at home and making sure home environments are healthy. The Group is meeting these expectations with the Somfy air programme, a range of solutions that improve indoor air quality. This is a genuine public health issue. At the same time, and when sustainable development is at the heart of

consumer concerns, Somfy’s solutions play a key role in the home energy performance.

Delivering performance

DELIVERING PERFORMANCEWell-orchestrated actions, strong brands, and operational excellence at all levels are drivers of

performance. The So! One project, a new ERP shared by the entire Group, illustrates how Somfy is harmonising its operational management practices. Despite the context, So! One has reached a key

milestone with the successful roll-out of a pilot run in Italy.

Inspiring & Engaging

INSPIRING & ENGAGINGTo integrate these changes, Somfy is adapting its organisation to become more agile and efficient.

Increasing competencies is a main axis of this evolution and is accompanied by a global vision with a customer-centric approach. Faced with an increasingly complex environment, Somfy favours simplicity in

its operational methods and empowerment in its decision-making processes. This is to ensure efficient execution that responds to the acceleration in time-to-market processes.

THE FOUR STRATEGIC PILLARS×



CORPORATE SOCIAL RESPONSIBILITY

BUILD A USEFUL AND SUSTAINABLE

COMPANY×

Developed upstream of the company's strategy, sustainable development is integrated throughout all Somfy entities and business lines. Faced with the urgency of climate

change and the health crisis, the Group is stepping up its commitment to move from being a sustainable company to being one that contributes.

Planet Reduce Somfy’s

environmental footprint

ProsperityEncourage business practices

that promote sustainable growth with little adverse

impact on the world

PeopleContribute positively to the

development and well-being of employees and society as

a whole

THE THREE PILLARS OF OUR CSR STRATEGY

55/100With a score of 55 out of 100, Somfy was awarded the silver medal in the EcoVadis

ranking, coming in at the top quarter of the best performing companies

in its sector

15thBetween 2019 and 2020, Somfy moved from the 26th

to the 15th place in the yearly Gaïa index, which distinguishes the 230 companies with the best CSR performance

57% of Somfy products are labelled Act for Green as of the 1 January 2021

-10% of CO2 emissions in three years

linked to the standby power consumption of Somfy motors

Member of the United Nations Global Compact, Somfy contributes to the

Sustainable Development Objectives



A guarantee of endurance and differentiationThe Paris Climate Accord had identi-fied companies as the main actors for change. Today, the health and eco-nomic crisis reinforces and broadens their role as pivotal players. Somfy has been committed to sustainable devel-opment for 10 years, and took a major step forward in 2020 by making CSR the key lever of its transformation and performance. Objective: To move from a sustainable company to a useful, contributory, resilient, and therefore prosperous company. Its endurance and differentiation depends on it. This contribution is a source of value when

the building sector accounts for 40% of energy consumption in Europe and 36% of greenhouse gas emissions. As for the health and economic crisis, it is a call for in-depth action as housing is once again becoming a core value. For Somfy, it is also an opportunity to intensify integrating its CSR strategy at all levels of the company.

Minimise footprint, maximize contributionCSR is a common objective for the Group's entities and acts as a compass in building their three-year strategic plans as well as in their operational

performance. Because they are priori-ties for Somfy, these issues are directly monitored by the Executive Commit-tee and the Sustainable Development Operational Committee, where each entity defines and shares its roadmap. 2020 was a pivotal year where the Group accelerated the roll-out of its CSR strategy by focusing efforts on its carbon footprint as well as that of its customers.

Planet

Three levers are operated simultaneously:

2Reduce customer carbon

footprint through energy-efficient

solutions

1Reducing Somfy's emissions

through eco-design and sustainable, energy-saving

practices

3Contribute to

CO2 absorption through carbon sinks

Rolling out a low-carbon strategy is at the heart of the Group's sustainable development policy.

Scope 2 0.4%

Scope 1 0.7%

Scope 3 98.9%

Totalof

emissions



A BUSINESS MODEL THAT CREATES VALUE

FOR ALL STAKEHOLDERS

×

Driven by its vision, Somfy strives to create innovative solutions for homes and commercial buildings.

Its ambition: Be the preferred partner for opening and closing automation in homes and commercial buildings.

THE SOMFY BUSINESS MODEL

↓

Human capital 5,710 employees(1)

Intellectual capital 2,210 patents

21 experts (Expertise sector)

Financial capital Stable shareholding = 72.08%

Cash flow = €274.5M

Productive capital Somfy present in 58 countries

8 industrial sites CAPEX = €49.8M

Societal capital Funds contributed to Les Petites

Pierres = €284 thousand Foundation budget = €851 thousand

Natural capital Low consumption

of natural resources

CONTRIBUTION TO THE MODEL



↓ ↓

VISION Inspire a better living environment, accessible to all.

Everyone around the world aspires to a safe, healthy, and sustainable living environment for themselves as well as

for their loved ones. To meet these essential needs for improving

living environments, Somfy creates innovative solutions for homes and commercial buildings in three areas:

↓Comfort and well-being for all and at all ages

↓ Safety of people and property

↓Preservation of the environment.

AMBITION Be the preferred partner for opening and closing automation

in homes and commercial buildings.

KEY ACTIVITIES Research & Development I Marketing I Prescription I

Assembly I Distribution I Sales

Four strategic pillars serving our ambition for 2030:

Forward-looking

in Smart Living

Rising value to customers


Inspiring &

Engaging

Employees Employee expenses = €367.3M

Training = 47,525 hours(2)

Engagement = 7.6(3)

Customers and usersNPS(4) = 68

Motors manufactured(5) = 192 millionConnected devices(6) = 7,800,947

InvestorsSales = €1,257.1M

COR = €260.7MROCE = 29.6%

SuppliersVolume of local purchases (< 500 km) = 40%

Environment57% of Act for Green® products(7)

Annual power consumption per motor = 10.7 kWh/year

Citizens223 participations in solidarity days

PROFITABLE GROWTH MODEL

VALUE CREATED FOR STAKEHOLDERS

(1) Excluding temporary staff. (2) Scope of social reporting.(3) “Intrinsic engagement rate” up 0.5 points.(4) Net Promoter Score (customer satisfaction indicator) = % promoters - % detractors. (5) Motors manufactured by the Group since the beginning, excluding Dooya.(6) Number of objects connected by the Somfy cloud.(7) According to the PEP ecopassport® standard.





INVESTOR RELATIONS

BREAKDOWNOFCAPITALIN%—

20.85%

7.07%

4.23%

4.47%

1.51%9.21%

52.65%

J.P.J.S.J.P.J.2Manacor Dev Pte LtdCompagnie Financière IndustrielleDespature family and othersTreasury sharesPublic

CAPITAL—At31December2020,SomfySAcapitalamountedto€7,400,000,dividedinto37,000,000shareswithanominalvalueof€0.20,fullypaidupandallinthesameclass.Thecompanyhasnot issuedanysecuritiesgiving right tocapital.Asauthorised,thecompanyowned2,616,125SomfySAsharesat31December2020.*

GROSSDIVIDEND—Pershare,in€

31/12/2031/12/19*

1.851.25

NETPROFIT—Pershare,in€

31/12/2031/12/19

6.194.75

LISTING—SomfySAhasaManagementBoardandaSupervisoryBoardandislistedonEuronextParisincompartmentA(ISINCodeFR0013199916).

CONTRACT—On20June2018,SomfySAsignedaliquiditycontractwithODDOBHF.

2021FINANCIALCALENDAR—

26January Releaseof2020Full-YearTurnover

10March Releaseof2020Full-YearResults

11March FinancialInformationMeeting-Presentationof2020Full-YearResults

20April ReleaseofQuarterlyTurnover(Q12021)

28April Releaseof2020AnnualFinancialReport

2June AnnualGeneralMeeting

20July Releaseof2021Half-YearTurnover

8September Releaseof2021Half-YearFinancialReport

8September Releaseof2021Half-YearResultsandConferenceCall

19October ReleaseofTurnoverfortheFirstNineMonthsofFY2021

DividendamountreviseddownwardsduringtheGeneralMeetingof24June2020.*



ORGANISATION*

SUPERVISORYBOARD—Chairman:MichelRollier**

Vice-Chairman:VictorDespature

Members:MarieBavarel-DespaturePauleCellard**

SophieDesormière**

FlorenceNoblot**BertrandParmentier**AnthonyStahlArthurWatin-Augouard***

AUDITCOMMITTEE—Chairman:VictorDespature

Members:PauleCellard**

BertrandParmentier**

REMUNERATIONCOMMITTEE—Chairman:MichelRollier**

Member:VictorDespature

MANAGEMENTBOARD—Chairman:JeanGuillaumeDespature

MemberandChiefFinancialOfficer:PierreRibeiro

AUDITORS—ERNST&YOUNGetAutresKPMGSA

FORFURTHERINFORMATION—PierreRibeiroMemberoftheManagementBoardandChiefFinancialOfficerTelephone:(33)450404849E-mail:[email protected]

Pleaserefertothepressreleasedated20April2021(chapter8oftheAnnualFinancialReport“Recentevent”),reportingtheplantochangethegovernancemodel*pendingtheapprovalofthe11thresolutionsubmittedtotheGeneralMeetingtobeheldon2June2021(chapter7“LegalDocuments”).Independentmember.**Memberrepresentingemployees.***



19

02


MANAGEMENT BOARDMANAGEMENT REPORT

Highlightsoftheyear20

Presentationoffinancialstatements22

Stockmarketperformance23

Post-balancesheetevents23

Outlook24

Riskmanagementandinternalcontrol25

Non-financialstatement31

Informationonresearchanddevelopmentactivities31

Listofexistingbranches32

Valueofintercompanyloansgranted32

Informationonpaymentterms32

Informationonthedistributionofsharecapitalandholdings33

InformationontransactionsperformedbyDirectorsduringthefinancialyear35

Approvaloftheparentcompanyandconsolidatedfinancialstatementsfortheyearended31December2020

36

Informationonnon-deductiblecharges36

Allocationofnetprofit36

CombinedGeneralMeetingof2June202136

Appendix:SomfySAfinancialresultsforthelastfiveyears42

02

02 MANAGEMENT BOARD MANAGEMENT REPORT


MANAGEMENT BOARDMANAGEMENT REPORT

TO THE COMBINED GENERAL MEETING OF 2 JUNE 2021

LadiesandGentlemen,

Inaccordancewithlegalandregulatoryprovisionsinforce,theManagementBoardhasconvenedyouhereinordertoinformyouonthemanagement of your company and its subsidiaries and to submit for your approval the financial statements for the year ended31December2020.Founded inFrance in1969,and todayoperating in58countries, Somfy is theglobal leader inopeningandclosingautomation forbothresidential and commercial buildings. A pioneer in the connected home, the Group is constantly innovating to guarantee comfort,well-beingand security in thehomeand is fully committed topromoting sustainabledevelopment. For50years, Somfyhasbeenusingautomation to improve livingenvironmentsandhasbeencommitted tocreating reliableandsustainablesolutions,whichhelppromotebetterlivingandwell-beingforall.

HIGHLIGHTS OF THE YEAR

COVID-19HEALTHCRISIS—DEVELOPMENTOFTHECRISIS

ThesuddenemergenceoftheCovid-19virusinChinainlate2019andthespeedwithwhichitspreadthroughouttheworldinearly2020ledtoasuspensionofoperationsatSomfy’sChinesesitesinFebruary2020 and the temporary stoppage of operations at itsFrench, Italian and Tunisian production sites, as well as at itsBonneville logistics site in France, between late March and lateApril2020.Somfyrapidlyintroducedasafetyprotocolinaccordancewithlocalregulations, with a certain number of protective measuresincludingremoteworkingforallpositionsthatallowedit,inordertoprotectthehealthofitsemployees,safeguardjobsandensurecontinuityofserviceforitscustomers.Operations resumed in a significant and sustained manner frommid-May.Followingdisruptiontosupply,productionandlogistics,the Group put into place a structure to best deal with thesuccessivewavesofthepandemic.TheGrouphasonlymadeverylimiteduseofgovernmentsupportin a few countries. It demonstrated its commitment to regionalorganisations and communities by donating equipment andsupporting emergency projects against poor housing and socialexclusion. The General Meeting also decided to reduce thedividendamountallocatedinrespectofthe2019financialyear.

IMPACTSFORSOMFY

After several months of disruption, the Group has seen asignificantupturninsalessincemid-May,whichwasconfirmedinJune and over the second half-year. For the 12months to31December2020,Groupsalesgrew6.1%ona like-for-likebasisinrelationtothesameperiodof2019.Itfell7.2%onalike-for-likebasisoverthefirstsixmonthsduetotheimpactofthepandemic,before bouncing back strongly, recording an increase of 20.1%overthesecondhalf-year,althoughitisdifficulttodistinguishtheundeniablecatch-upeffectfromtheeffectoforganicgrowth(theGroup’saverageannualgrowthisintheregionof6%).Currentoperatingmarginimproved(20.7%ofsalesin2020against17.1% in 2019) thanks to the combined effect of the upturn insales,afavourableproductmixeffect,andexceptionalone-offcostsavingsmainlyimplementedoverthefirsthalf-year.Thenon-recurringcostsincurredtomanagethecrisiscontinuedtohave no material impact at Group level. They mainly involvedexpenses related to the introduction of protective measures,exceptionalshippingcoststoensurecontinuityofcustomerserviceandcertainpenaltiesfordeliverydelays.Net financial expense was impacted by the foreign exchangeimpact related to fluctuations in currencies under great pressureduringthepandemic(BRL,TRY,USD,etc.).Indicatorsofimpairment(temporaryshutdownsoffactoriesandareductioninactivity)emergedat30June2020followingthecrisisandledtheGrouptocarryoutimpairmenttestswhichresultedinthe impairment of iHome residual goodwill (€0.7 million). Theimpairmenttestsperformedat31December2020didnotresultinanyadditionalimpairment.The Group’s financial structure has therefore remained quitesoundwithanincreaseinthenetfinancialsurplus.



DETAILEDOUTLOOK

2020 demonstrated the resilience of Somfy’s business model,coupledwiththepursuitofcomfort inthehome.Nevertheless, itis not representative in terms of margin level since certainnon-structuralsavingswillnotberenewedinfutureyears.Over the 2021 financial year, sales should increase, with asignificantbaseeffect that is favourableover the first sixmonthsandisunfavourableoverthesecond.Withinaweakenedeconomicenvironment, the current operatingmargin rate should return toitspre-crisislevel.The current environment is highly uncertain, and the aboveassumptions represent the Group’s current scenario. They arelikelytochangeinlinewiththehealthandeconomicsituation.

INFORMATIONONRISKS

TheCovid-19healthcrisisdoesnotcall intoquestiontheGroup’sbusinessmodeloritsfundamentals,butdoescompelittoadaptitsprocesses.Theriskmappinghasbeenupdatedandadjustedinlinewith the feedback relating to the management of the crisis, inparticular, the introductionof rapidandappropriatemeasures toprotect itsemployeesandproductionand supply chainprotocolstoensure thecontinued fulfilmentofcommitments tocustomerswhencrisesoccur.TheGroup is vigilant in its assessment of risks related to foreignexchange and the supply of raw materials and electroniccomponents within a market environment that is challenging.Currencyandrawmaterialhedgingcontinuetobeadaptedinlinewithforecastsandmarkettrends.Theassessmentofliquidityandcredit risks remains unchanged. In addition to its cash of €588.9million at the end of 2020, the Group has €174.0million inconfirmedandundrawncreditfacilitiesandisnotinbreachofanycovenants. Itwillbe inaposition tomeet itsmaturitiesover thenext12months.

NEWORGANISATIONALSTRUCTURE—Thebuildingindustryisundergoingprofoundtransformationswithaccelerated digitalisation, the need for greater energy efficiency,evershorter innovationcyclesandmore.TheseareallchallengesSomfyhasbeguntotacklethankstoitsBelieve&Actstrategicplanfirstimplementedin2017butnowneedtotakeastepfurther.The current organisation, whose foundations date back to 2004,has enabled the Group to expand its range of applications,becoming a pioneer of smart home solutions and expanding itsgeographical presence. After a decade of strong and profitablegrowthandprogress in itsmainmarketsegments,Somfyaimstoaccelerate in order to continue establishing its leadership in itsmarkets.In order tomeet these challenges, on 1January 2020 theGrouphassetupaneworganisationguidedbythreemajorprinciples:afunction-basedarchitecturetosupporttheGroup’sdevelopment;a customer-centric organisation with reduced interfaces tofacilitate decision-making and optimise resource allocation; andfinally a strong focus on the digitalisation of its products,customerrelationsandoperations.ThefirstdefinitiveactofthischangeistheappointmentofanewExecutive Committee, along with the creation of a Strategy &InsightsDivision,thereorganisationofthethreeactivitiesthatareHome & Building, Access and Connected Solutions into threeDivisions: Products & Services, Engineering & CustomerSatisfaction, and Operations & Supply Chain. Finally, the salessubsidiaries will be split into two new geographical areas, forgreatertransversality.

In addition to the new organisation, the Executive Committee –under the supervision of JeanGuillaumeDespature, ChairmanoftheManagementBoard–willworkondefiningandimplementinga new, three-year strategic plan, based on the achievementsbroughtbytheBelieve&Actplan.Theroll-outofthisneworganisationhasnotbeendelayedbythehealthcrisis.

CHANGESTOTHECONSOLIDATIONSCOPE—Therewerenomaterialchangestotheconsolidationscopeduringthe2020financialyear.

CONTINGENTLIABILITIES—TheCourtofAppealofChambéryissueditsrulingon21May2019on the dispute between Spirel employees and Somfy SA. Theclaims of the employees in respect of the alleged deliberatebankruptcy of Spirel and the non-material damage caused as aresult of anxiety, disappointment and vexation were judgedinadmissible, therebyconfirmingtheApril2017rulingof theHighCourt of Albertville. The employees lodged an appeal before theCourdeCassation(highestappealcourt)inAugust2019.It should be noted that their claims for damages totalled€8.2million. The liquidator of the company Spirel also sought tohaveSomfySAorderedtorefundadvancesof€2.9millionpaidbytheAGS(GuaranteeFundforthePaymentofSalaryClaims)intheeventthedisposalwasdeclarednullandvoid.ProceedingsbeforetheLabourCourt–dismissedin2016and2018and involving the employees contesting the grounds for theirdismissal and claimingdamagesof a substantially similar amounttothatsoughtbeforetheCourtofAppeal–arestillongoing.These factors do not alter the Group’s risk evaluation.Consequently, it continues to qualify these risks as contingentliabilitiesandnoprovisionwasthusrecognisedinrelationtothesedisputesat31December2020.

On 5January 2015, Somfy SA transferred its 46.1% direct andindirect equity investment in the share capital of CIAT Group toUnited Technologies Corporation. On 31March 2016, UnitedTechnologies Corporation filed a complaint against the sellers ofthe CIAT shares under the liability guarantee for a total of€28.6million (Somfy’s share being €13.2million). The Groupconsiders these requests to be unfounded, and insufficientlydetailed and justified. In mid-November2017, UTC brought anaction against the sellers before the Paris Commercial Court forthe liability guarantee. Proceedingsbefore theCommercial CourtandtheCourtofAppealareongoing.As the proceedings and the documentation provided by UTCcurrently stand, the Group continues to contest the entirety ofUTC’sclaimsandremainsconfidentregardingtheoutcomeofthisdispute. It has qualified the risk as a contingent liability and noprovisionwasthereforerecognisedat31December2020.At 31December 2020, Somfy SA’s financial statements include areceivable for deferred settlement in relation to the sale of theCIATshares for the sumof€9.7million. Inearly July2017,SomfySAandtheothersellersbroughtanactionagainstUTCbeforetheParis Commercial Court seeking the fulfilment of the acquisitioncontractandthesettlementofthedeferredpaymentsfallingdue.In this regard, at a hearing in February2021, the judge hearingapplications for interim measures sentenced UTC to pay aprovision of €6.6million. These proceedings are however stillongoing.SomfySAremainsconfidentregardingthesettlementofthese sums and therefore no writedown in relation to thesereceivableswasrecognisedat31December2020.



PRESENTATION OF FINANCIAL STATEMENTS

PARENTCOMPANYDATA—Overtheyearended31December2020,SomfySAgeneratedsalesof €3.9million.Net financial incomeamounted to €107.7million,including €105.7million in dividends paid by the subsidiaries inrespectoftheirnetprofitfortheyearto31December2019.Net profit was €101.0million, after inclusion of a tax income of€2.3million.

CONSOLIDATEDDATA—SALES

Groupsaleswere€1,257.1millionforthefinancialyearjustended,anincreaseof4.7%comparedwiththepreviousfinancialyear(up6.1% on a like-for-like basis). They fell 7.5% over the first sixmonths(down7.2%onalike-for-likebasis),duetothehealthcrisisstemmingfromtheCovid-19pandemic,andrecordedanupturnof17.6%inthesecondhalf-year(up20.1%onalike-for-likebasis).Severalregionsendedthefinancialyearonaclearpositivetrend,as was the case for Eastern Europe and Central Europe, whichagain performed very strongly, as well as Northern Europe andNorthAmerica,whichbothperformedwell.

The other territoriesweremore adversely affected by the crisis,due in particular to the unavoidable operational disruption andinterruption causedby the lockdownmeasures in the spring,butshowedgoodresilienceovertheyearasawhole.ThiswasthecaseforFranceandtheAfrica&theMiddleEastregion,aswellasforSouthernEuropeandLatinAmerica.All regions recovered over the second sixmonths and several ofthem succeeded in offsetting a large proportion of the fallrecordedbetweenMarchandMay.Theirrecovery isallthemoreencouraginggiventhatitisnotbasedonaperiodofseveralweeks,meaningitwasmerelyaquestionofcatchingup,butontheentirethirdandfourthquarters.Italsoprovidesevidenceofabasetrendthatwas confirmed – even accentuated – by recent events, as aresult of the increasingly important role played by the home ineveryone’s lives, notably due to the increase in remote workingandthedevelopmentofonlineservices.Sales for the equity-accounted Chinese subsidiaryDooya totalled€201.1millionover the financial year,an increaseof7.3% in realtermsand9.2%onalike-for-likebasis.TheyfellinChina,acountryseverely impacted by the pandemic early in the year, but grewstronglyintherestoftheWorld.

SALESBYCUSTOMERLOCATION

€thousands31/12/20 31/12/19 ChangeN/N-1 ChangeN/N-1ona

like-for-likebasis

CentralEurope 261,044 231,716 12.7% 12.2%

ofwhichGermany 212,185 186,538 13.7% 13.7%

NorthernEurope 146,613 134,911 8.7% 9.5%

NorthAmerica 107,127 102,972 4.0% 6.2%

LatinAmerica 19,286 23,331 -17.3% -2.1%

NORTH&WEST 534,069 492,930 8.3% 9.5%

France 347,444 341,548 1.7% 1.7%

SouthernEurope 119,880 121,910 -1.7% -1.8%

Africa&theMiddleEast 60,604 64,236 -5.7% 1.6%

EasternEurope 127,187 107,099 18.8% 23.2%

Asia-Pacific 67,943 72,518 -6.3% -4.3%

SOUTH&EAST 723,059 707,312 2.2% 3.7%

TOTALSALES 1,257,128 1,200,241 4.7% 6.1%



RESULTS

Current operating result stood at €260.7million for the financialyear justended,up27.3%(up31.3%ona like-for-likebasis),andthus represented 20.7% of sales, compared with 17.1% thepreviousyear.The combined effect of the recovery in sales recorded in thesecond half-year, a favourablemix of products, and cost savingsstemming from the measures taken within the context of thehealthcrisisisbehindthisgrowth,whichispartiallynon-structuralgiven the exceptional and provisional nature of these measures(reductioninconsulting,marketingandtravelbudgets).Theimpactofthepandemicwasparticularlypronouncedoverthefirst half of the yearwith, on the one hand, a substantial loss inincomedue to the loss in revenues,andon theother, significantproduction and supply chain disruption due to the temporaryshutdown of several manufacturing sites and disorganisation ofcertainsourcesofsupply.Conversely,theprotectivemeasureshavehadamoderateimpactonthefinancialstatements,eventhoughthesafetyofemployeesand compliance with guidelines from the administrativeauthorities, as well as the safeguarding of jobs, have been thepriorities. The impact of external support also proved to bemarginal since thedecisionwas taken tomakeminimal use of itandonlyincertaincountries.

Consolidated net profit totalled €213.0million, an increase of30.5%.Ittakesintoaccountapositivecontributionof€10.9millionfrom associates, thanks to the improvement recorded at Dooya,and€52.5millioninincometax.Thereturnoncapitalemployed(ROCE)stoodat29.6%,comparedwith 22.2% the previous year, testament to the quality of theseresults.

FINANCIALPOSITION

Shareholders’equitygrew from€1,012.8 to€1,171.0millionoverthe financial year just ended, and the net financial surplusincreasedfrom€310.5to€517.7million.Thegrowthinnetfinancialsurpluswasduetotheincreaseincashflow,thedecline inworkingcapitalrequirementsandtherelativestabilityofothercashflowitems.

ALTERNATIVEPERFORMANCEMEASURES

The change N/N-1 on a like-for-like basis, current operatingmargin,ROCEandnet financialdebtareAlternativePerformanceMeasures (APMs),definitionsandcalculationdetailsofwhichareincludedinnote4.3totheconsolidatedfinancialstatements.

SEGMENTREPORTINGAT31DECEMBER2020

€thousandsNorth&West South&East Intra-regional

eliminationsConsolidated

Segmentsales 527,372 1,059,028 -329,272 1,257,128

Intra-segmentsales -2,566 -326,706 329,272 –

Segmentsales-Contributiontosales 524,806 732,322 – 1,257,128

Segmentcurrentoperatingresult 67,725 192,953 – 260,678

Shareofnetprofit/(loss)fromassociates – 10,858 – 10,858

Cashflow 49,635 224,858 – 274,493

NetinvestmentsinintangibleassetsandPPE(includingIFRS16) 4,392 59,740 – 64,133

Goodwill 2,619 91,771 – 94,390

NetintangibleassetsandPPE 36,517 297,554 – 334,071

Investmentsinassociatesandjointventures – 145,471 – 145,471

STOCK MARKET PERFORMANCE

Duringthe2020financialyear,theSomfySAsharepriceincreasedby58.4%.At31December2019,thelasttradingdaybeforethecloseofthepreviousfinancialyear,thesharepricewas€87.50,comparedwith€138.60at31December2020.OverthesameperiodtheCAC40andCACAll-Tradableindices(formerlySBF250)decreasedby7.1%and6.4%respectively.Basedonthislastsharepriceandtakingaccountofagrossdividendpershareof€1.85,theSomfySAshareyielded1.3%.Themarket for theshare recordedamonthly tradingvolumehighof189,316and lowof43,225permonth,withamonthlyaverageof104,670shares,comparedwith70,970sharesthepreviousyear.

POST-BALANCE SHEET EVENTS

PLANTOCHANGETHECOMPANY’SADMINISTRATIONANDMANAGEMENTFORM—TheManagementBoardproposeschangingtheformofgovernanceofthecompanytothatofalimitedcompanywithaBoardofDirectors.AftertheGeneralMeeting,andpendingitsapproval,theBoardwillconsidertheseparationofthefunctionsoftheChairmanoftheBoardofDirectors,whichwouldbeentrustedtoJeanGuillaumeDespature,andtheChiefExecutiveOfficer,whichwouldbeentrustedtoPierreRibeiro.TheappointmentofValérieDixmierasDeputyCEOinchargeofPeople,CultureandOrganisationwillalsobeconsidered.



ACQUISITIONOFREPAR’STORES—On14December2020,Somfycompletedtheacquisitionofa60%majoritystakeinthesharecapitalofRepar’stores,aspecialistinrollerblindrepairandupgradeservicesinFrance.ThisshareholdingbecameeffectiveatthestartofJanuary2021followingtheliftingoftheusualconditionsprecedent.Henceforth,Repar’storeswillbefullyconsolidatedinSomfy’sfinancialstatements.TheagreementisaccompaniedbyadditionaloptionsallowingfortheacquisitionofRepar’stores’remainingsharesattheendof2026.TheacquisitionofRepar’stores is in linewithAmbition2030, the10-yearstrategicplanAmbition2030–toconsolidate itsstatusas thepreferred partner in opening and closing automation for both residential and commercial buildings, while simultaneously securing thenecessaryresourcestocapturenewmarketopportunitiesintheservicescategoryandreinforceitscommitmenttoendusers.Beyondtheoperational synergies brought about by this alliance, this combination allows Somfy to strengthen its commitment to sustainabledevelopmentbyinvestingintheabilitytorepairrollerblindsandintheirsustainability.Rollerblindrepairsandupgradesisanichesegmentwithhighgrowthpotentialduetothesizeoftheinstalledbase(morethan65millionrollerblindsestimated inFrance,almosthalfofwhicharenotmotorised)and itscontinuedgrowth(drivenbybothrenovationandnewbuilds).Toservethisfast-growingmarket,Repar’storeswillbeabletoleverageSomfy’sstrongglobalpresenceanditsnetworkofEuropeansubsidiaries.

TheclosingdateofRepar'stores'financialstatementswas30Juneandwaschangedto31December.Repar’stores’mainindicatorsforthefinancialyearended31December2020(6months)arethusasfollows:

€thousands

31/12/20UnauditedIFRS

consolidatedfinancialstatements



Incomestatement

Sales 18,847 28,691

Currentoperatingresult 3,008 3,683

Netprofit 2,151 2,554

€thousands





Balancesheet

Non-currentassets 3,095 3,396

Currentassets 11,354 12,508

Non-currentliabilities 580 825

Currentliabilities 9,531 11,143

Shareholders’equity 4,338 3,936

Repar’storesemploysnearly100staffandhasapproximately200franchisees.Givenanacquisitionpriceof€34.7millionfor60%ofthecapital,theprovisionalgoodwillisapproximately€32.1million,theallocationofwhichwilltakeplaceduringthe2021financialyear.

HEALTHCRISIS—Withinthecurrenthealthcrisisenvironment,theglobalsituationremainsuncertainandmaychangerapidlyaccordingtofactorsthatarehardtocontrol.ItisdifficulttoaccuratelyassessandanticipatetherepercussionsontheeconomyingeneralandontheGroup’sbusinessinparticularin2021.

OUTLOOK

Therecentperiodhasmadeitpossibletogaugethestrengthoftheresidentialandcommercialdigitalisationmarket,andassuchtobettermeasurethe impactofthedigitalrevolution,demographicandsocietychangesandtheenergytransitiononthedemandforautomatedandconnectedsolutions.However,visibilityremains limitedovertheshort-termduetotheongoinguncertaintyregardingthedevelopmentof thecurrenthealthandeconomiccrisis.Nevertheless,growthinsalesisexpectedoverthecurrentfinancialyear.ItshouldbeallthestrongeroverthefirstsixmonthsgiventhatthebaseeffectwillplayoutfavourablyinmajorregionssuchasFrance,SouthernEuropeandNorthAmerica.Similarly,areturnofthecurrentoperatingmargintopre-crisislevelsisenvisionedastherewillbenorenewalofsavingsmadelastyearinthefieldsofconsultingandmarketing.



Thecurrentfinancialyearwillalsoseetheroll-outofthenewstrategicplan,Ambition2030,withtheaimofseekingincreasedefficiencyinprocessesandanoptimisedallocationofresourcesbyharmonisingpracticesandincreasingsynergies,aswellasincreasedaddedvalueintermsoftherange,thankstothedigitalisationofproducts,theinteroperabilityofsolutionsandthedevelopmentofservices.Potential acquisitions will also continue to be assessed in parallel and implemented where appropriate, as can be seen in the recenttakeoverofRepar’stores,theFrenchspecialistintherestorationofrollershutters.TheGrouphasnotbeenadverselyaffectedbyBrexittodateanddoesnotexpecttobeinthefuture.Itmay,however,befurtherimpactedbythehealthcrisisifnewrestrictivemeasuresareimposedinitsmainregionsofoperation(Europe,theUnitedStatesandChina).

RISK MANAGEMENT AND INTERNAL CONTROL

PRESENTATIONOFTHERISKMANAGEMENTANDINTERNALCONTROLSYSTEM—GOVERNANCEANDLEADINGPLAYERS

TheGroup’s internalcontrolandriskmanagementsystemcoversall thecontrolledcompanies that fallwithin theGroup’sconsolidationscope, apart from equity-accounted companies, notably Dooya,which has its own system, inwhich theGroup is involved in particularthroughthecreationofadedicatedAuditCommittee,presenceontheDooyaBoardandsupportinlinewithneeds.At Group level, the system has been developed around the three lines of defencemodel, ensuring the effective division of roles andresponsibilities.

SUPERVISORY BOARD

EXECUTIVE COMMITTEE/MANAGEMENT BOARD AUDIT COMMITTEE

Opera�onal Management Internal Audit

External audit

Finance

HR

IT

Legal

First line of defence

Second line of defence

Third lineof defence

Qua

lity

Risk

Man

agem

ent

& C

ompl

ianc

e

Inte

rnal

Co

ntro

l

Risk and control management ac�vi�es

carried out by employees (day-to-day controls)

Risk and control management ac�vi�es carried out by the

company’s support func�ons

Assessment of the degree of opera�onal

control

GROSS RISK NET RISK



Thefirstlineofdefence,operationalunits

TheGroup’soperationalunitshavebeenmadeawareoftheneedforcompliancewithrulesandproceduresinordertoestablishaneffectivefirstlineofcontrol.EachGroupentitymustimplementappropriatecontrolactivitiesatoperational level in relation to the processes that concern it, byapplyingtherulesandguidelinesdevelopedatGrouplevel.

Thesecondlineofdefence,FunctionalDepartments

FunctionalDepartments representanessential link in the secondlineofcontrol.EachoftheseDepartmentssetsouttheproceduresto be applied and offers their support to the Group’s entities inrelation to the implementationofactionplansaimedat reducingtherisksidentified.The second line of control also includes the Risk Management&ComplianceandInternalControlfunctions.In2020,theroleofChiefComplianceOfficerwascreated.Havingintroducedgovernanceandadedicatedorganisation,thispositionisresponsibleforleadinganoveralldriveatGroupleveltoensurethat all risks related to non-compliance are properly addressed.This approach feeds into the roadmaps and action plans of thecross-company functions and complements the traditionalapproach that has existed historically for the Group’s riskmanagement.

Thethirdlineofdefence,InternalAuditDepartment

TheInternalAuditDepartmentoverseestheoverallmonitoringofthequalityofriskmanagement,therelevanceandeffectivenessofthemonitoringsystemaswellascompliancewithrulesandcodesof conduct. It is responsible for assessing how well the internalcontrol system works and for proposing recommendations forimprovementifneeded.InternalauditsoftheGroupareconductedunderthesupervisionof the Internal AuditManagerwho relies on a teammadeupofthree auditors, with an average of 30 assignments per year.Following each assignment, and based on the recommendationsissued by the auditors, action plans are prepared by the entitiesconcerned to correct the shortcomings highlighted by the auditreports.A summary of these recommendations is presented to GeneralManagementandtheAuditCommitteeatleasttwiceayear.

GRC(Governance,RiskandCompliance)solution

Inordertoperformtheircoordinationandmanagementrole,theInternalControl,RiskandComplianceDepartmentandtheInternalAudit Department all have a shared GRC solution, whichspecificallyallowsthemto:

initiate a self-assessment campaign for subsidiaries each year,–basedonaframeworkofkeycontrols;

monitor all the assignments of Internal Audit, as well as the–relatedrecommendationsandthecorrespondingactionplans;assesstheGroup’srisksatseveral levels intheorganisation,to–consolidate the results at Group level and to link them withactionplans.

Inaddition,adigitalaccountingcontrolssolutioniscurrentlybeingpurchasedandwillberolledoutfrom2021onwards.Further work will also be carried out in 2021 on the integrationbetween the management by processes approach and themanagement of risks and the associated controls, as part of anongoingdrivetoimproveefficiencyandperformanceassessment.The use of all these resources is closelymonitored by the AuditCommittee,which is regularly informedof theprogress achievedandtheresultsobtained.

RISKMANAGEMENT

The Group’s risk management includes all the resources,proceduresand initiativesthataimto identify,assessandcontroltheGroup’srisksinreferencetotheGroup’sstrategicobjectives.Group Management firmly believes that risk management andcontrolcontributeto:

creatingandpreservingthevalue,assetsandreputationofthe–Group;securingtheGroup’sdecision-makingandprocessestofacilitate–theachievementoftargets;encouragingactionsthatareconsistentwiththeGroup’svalues;–raisingemployeeawarenessandbringingthemtogetheraround–asharedvisionconcerningtherisksinherentintheiractivity.

A Group risk framework has been established to be able toformally set out and consolidate the assessments of each scopeandfunction.The assessment stage involves examining the potentialconsequencesofthemainrisksidentified(consequencesthatmayin particular be financial, human, legal or reputational) and toassesstheirlikelihoodofoccurring.TheGrouphasadoptedstandardmethodology forassessing risksenablingtheassessmentofinherent(gross)risksandresidual(net)risks based on a standard and consistent rating allowing theimpacts,likelihoodofoccurrenceandlevelofcontroltobegraded.These assessments mean that the Group’s risks can be mappedandupdatedeveryyearbytheRiskandComplianceDepartment.This mapping is ratified by the Executive Committee whichundertakes to monitor the main risks identified. An owner isappointed for each priority risk and is responsible for proposingactionplansforthehandlingofthatrisk.Monitoringtheserisksisincorporated into the monthly review cycles of the ExecutiveCommittee.Mappingalsohelpswiththedevelopmentoftheannualauditplan,astheauditteamisresponsibleforchallengingtheassessmentofcertainrisksandforproposingrecommendationstoreducethem.



INTERNALCONTROL

Definitionandobjectives

Theinternalcontrolsystemisimplementedtoprovidereasonableassuranceregardingtheachievementofobjectivesbycontributingtotheeffectivenessandefficiencyofoperations,tothereliabilityof the financial reports and the compliancewith applicable lawsandregulations.The Group’s internal control system draws on the COSOframework.

Controlsandassessments

A framework of key controls has been defined for each of thebusiness’s major processes and is used during an annualself-assessmentprocessbyeachentityManager.An annual review of this framework is conducted in order toupdateit,facilitateitsunderstandingbyallsubsidiariesandtailorittothelevelofinternalcontrolmaturityacquired.Certaincontrolsarerelatedtoproceduresthatarealsoupdatedifnecessary.

Internalcontrolmonitoring

AGRCCommitteemeetsatleastonceeverytwomonthstodiscussthe risks identified, analyse incidents, identify deviations andsuggestadjustmentstotheoverallsystem.The Internal Control Department also conducts two types ofmonitoring:

an analysis of the results of the campaign for Year N and a–comparisonwithYearN-1;a quarterly dashboardmonitoring the action plans for each of–the Group’s major functions, enabling their progress to bemeasured.

ThesedocumentsarenotablysenttotheBusinessAreaManagersand the Heads of Processes for observation of development,deviationsanddelays.Certainimprovementsaredirectlyaddressedbyentitiesatalocallevel,whileothersarelookedintocentrallybytheInternalControlDepartment and/or in collaboration with other cross-Groupfunctions.

INTERNALCONTROLSYSTEMRELATINGTOTHEPROCESSFORPREPARINGACCOUNTINGANDFINANCIALINFORMATION

Controlmeasuresrelatingtotheprocessforpreparingaccountingand financial information are detailed below in response to theobjectiveofreliabilityofthefinancialreports.

Preparationoffinancialstatements

TheGrouphasdefinedauniqueandcommonframework for therecordingofaccountingandfinancialinformation.Itresultedinthedefinition and implementation within all subsidiaries of a Groupchartofaccounts,aswellasthedefinitionandimplementationofthe main management procedures (inventories, non-currentassets,tradereceivables,etc.),whichareformalisedintheGroupProcedureManual relayed through and updated on the Group’sintranet.

The Group’s various ERPs thus include standard configurationconcerning in particular the accounting plan and analyticalmonitoring,enablingtheapplicationofGroupprocesses.Furthermore, the proper application of the chart of accounts,procedures and reporting reliability is monitored by visits tosubsidiaries,plannedwithinthecontextofyear-endandhalf-yearclosing.It is also verified during the budget preparation and monthlyreportingprocesses.Particularcareistakenwithriskanalysis,throughareviewofassetprovisions and provisions for liabilities and charges, as well asoff-balancesheetcommitments.

Financialstatementscontrol

TheConsolidationDepartment,afterverifyingthecompletenessoffinancialinformation,theproperapplicationofclosingproceduresand restatements, performing the intragroup accountreconciliationsandverifying thenetequity justification,performsfinancialstatementconsolidationusingdedicatedsoftware.Theconsolidatedfinancialstatementsarepreparedinaccordancewith IFRS. In addition, accountingoptions selectedarepresentedtoandapprovedbytheAuditCommittee.

Financialcommunication

Following their approval by the Management Board and theirreview by the Supervisory Board, the half-year and full-yearfinancial statements are presented to the financial communityunder the auspices of the SFAF (French financial analyst society)andpublished inareportpostedonthefinancial issuer’swebsite(www.somfyfinance.com) as well as via a primary informationprovider(www.info-financiere.fr).TheotherregulatedinformationreferredtoinArticle221-1oftheAMF’s general regulations is also available on both these sites.Relevantinformationrelatingtothecompany’sbusinessactivitiesispresentedtotheAuditCommittee.

Treasurymanagement

The Group Treasury Department reports to the Group ChiefFinancialOfficer,whoisamemberoftheManagementBoard.ATreasuryCommitteemeetingisheldeachmonth.TheroleofthisCommitteeistwofold:

strategic: to define the overall policy in terms of Group Cash–Management, financing, and interest rate, exchange rate andinvestmentriskmanagement.Theyalsoincludethefollow-upofGroupsubsidiaries’equitybalancesheetitems;operational:toguaranteetheregularmonitoringofGroupCash–Management’s actions. These are detailed in a monthlydashboard.

Lastly,aGroupTreasuryCharterdefinesbestpracticesandlistinasingledocumenttheguidelinesthatensurethesecure,economicaland efficient management of financing and deposit operations,andmoregenerallyofcashmanagementandbankrelationswithintheGroup.



RISKFACTORS—MAINRISKS

TheselectionofthemainriskspresentedinthissectionwasmadebasedonareviewoftheGroup’sriskmapping,updatedin2020.OnlyrisksspecifictotheGrouplikelytosignificantlyaffectitsactivity,imageorfinancialpositionareincluded.ThesearetheriskswithasignificantnetimpactorthatarespecifictoSomfy.ThenetimpacttakesintoaccountthegrossimpactandtheriskmitigationmeasuresadoptedbytheGroup.

Thetablebelowgroupstheserisksbycategory.ApictogramhighlightstherisksinrelationtowhichaCSRcomponenthasbeenidentified.

Category Risk Description CSRcomponent

Trend

Operational

Business&TechnicalInterruptionRisk

Businessinterruptionsresultingfromtechnologicalmalfunctions,equipmentfailuresorothereventswouldhaveanegativeimpactonproductionandsupplychainoperations.

ProductionCapacityRisk Insufficientproductioncapacitymayleadtoaninabilitytosatisfycustomerneedsanddemands;inaddition,anunderusedresourcecapacitywouldleadtohigherinvestmentcostsandlowermargins.

SupplyAvailability/CriticalVendorRisk

LimitedavailabilityorproblemswithacriticalsupplierwouldthreatenSomfy’sabilitytoprovideahigh-qualityserviceatcompetitiveprices.

LifeCycleRisk/SerialLife Non-optimalmanagementofproductlinesandtheportfoliothroughoutthelifecyclewouldcreateinefficiencyandadditionalcosts.

ProductDevelopmentRisk Non-optimiseddevelopmentprocesseswouldstopusfromofferingarangethatmeetstheneedsofthemarket(timetomarketandfeaturesinparticular).

QualityofProducts&Services

Defectsrelatedtothequalityofproductsandserviceswouldthreatenthecompany’sabilitytosatisfyitscustomersandincreaseitsmarketshare,andingeneraltermswouldhaveanegativeimpactonitsoperations.

Social/PoliticalRisk Social,politicalandgeopoliticalactionwouldthreatenSomfy’sresourcesbypreventingcommercialactivitiesandtransactionsfromprogressingnormally.

CatastrophicLossRisk AmajordisasterwouldcreatesignificantdisruptiontoSomfy’soperationsandservices,representingsubstantialadditionalcosts(degradedmodeandreturntonormal).

ITUrbanization ThelackofcoherencebetweenbusinessneedsandavailableITsolutions/toolswouldgenerateinefficiencyandadropinperformance.

CyberAttackRisk TheineffectivenessoftechnicalandphysicalITdefenceswouldthreatentheongoingintegrity,availabilityandconfidentialityofsystemsanddata.

ITQualityRisk TheobsolescenceorlackofruggednessofITsystemswouldgenerateariskofdowntimetotheITinfrastructureandasaresultaninterruptiontoouroperations.



Category Risk Description CSRcomponent

Trend

Operational

DataPrivacyManagement Flawsinoursystemscouldleadtoinappropriateaccesstodataorsystems(lossortheftofcriticalinformation).Thisriskalsoincludespotentialnon-compliancewithlocalregulationsconcerningtheprotectionofpersonaldata.

TalentandCompetenciesRisk

PoormanagementofSomfy’straining,knowledge,skills,careeropportunitiesorkeystaffwouldthreatentheachievementofthecompany’sobjectives.

ResourceAllocationRisk Lackofappropriateresourcescouldgenerateprojectdelaysandemployeefrustrationoroverworkandresultinmissedopportunities.

ManagementSystemRisk(SGMS)

Thelackofunderstanding,use,trainingormeaninginrelationtotheSomfyManagementSystem(SGMS)wouldimpacttheeffectivenessofoperationsandcoherencewiththestrategicobjectives.

FraudRisk(internal&external)

InternalorexternalfraudwoulddamageSomfy’sreputationandexposeittofinanciallosses.

Business

BrandEquity LackofstrengthorrecognitionoftheSomfybrandwouldpreventpositivediscriminationinrelationtothecompetition.

CompetitorRisk Alternativesolutionsornewbusinessmodelswouldthreatenthecompany’scompetitiveposition.

RiskManagementRisk Theimmaturityofriskmanagementprocessesandthelackofdefinitionofresponsibilitieswouldpreventtheprioritisingofmeasuresandtheachievementofthecompany’sstrategicobjectives.

Legal

Noncompliancewithsociallawsandregulationsincludingsafetyandsecurity

Non-compliancewithsocialobligationswouldexposeSomfytosanctions,finesandpenalties.

Noncompliancewithstandardsandregulationsrelatedtoproductsandservices

Non-compliancewithapplicablestandardsandregulationsconcerningproductsandserviceswouldexposeSomfytosanctions,finesandpenaltiesandwouldthreatenitsreputation,commercialopportunitiesandexpansionpotential.

Noncompliancewithlawsandregulationsrelatedtobusinessandmarketpractices

Non-compliancewithapplicablelawsandregulationsconcerningthewayinwhichbusinessisconductedwouldexposeSomfytosanctions,finesandpenaltiesandwouldthreatenitsreputation,commercialopportunitiesandexpansionpotential.

In2020,theGroup’sneworganisationandthestrategiccyclesoverhaulprovidedtheopportunityforanin-depthreviewoftheconditionsunderwhich it conducts itsbusiness,andunleashedgenuinemomentum in relation tomanaging risksand thequalityof theprocesses,notablyinordertoassessandimproveitsresilience.TheRiskandComplianceDepartmentcontributedtothisinitiative,attheendofwhichtheGroup’sriskmappingwasupdated.Out of the topics identified in 2020, certain issues came upmore strongly due to the Covid-19 pandemic, such as Supply Chain in itsentirety,aconsequenceofthesuddendropinsalesandtheveryrapidandunexpectedrecovery,aswellascrisismanagementandbusinesscontinuity.Inaddition, theGrouphasbegunaphaseofoverhauling its IT infrastructure,with inparticular the roll-outofanewERP (SAP,So!Oneproject)whichhasledtoanincreaseinitsassessmentofrisksbasedondigitalisationandITsystemsingeneral.Lastly,therehasbeenasignificant shift in relation to themanagement of the product portfolio, as part of the new organisationwhich brings together all theapplicationswithinthesameProductsandServicesDepartment.Roadmapsandconsolidatedmonitoringofactionplansrelatedtoissuesidentifiedaspriorityhavebeenimplementedandintegratedintothe Executive Committee’smanagement cycles. GroupManagement firmly believes that themanagement and control of risks and theongoingimprovementofprocessescontributetotheGroup’sperformanceandtotheachievementofitsstrategy.



OTHERNON-MATERIALRISKS

These “non-material” risks are found at a controlled level or arenotnecessarilyspecifictotheGroup.

Financialrisks

Adescriptionofthefinancialrisks(Foreignexchangerisk,Interestrate risk, Liquidity risk, Credit risk, Raw material risk, Customercredit risk) and the policies applied to mitigate their occurrencearecoveredbyadetailedpresentationinnotes4.5and7.3oftheConsolidatedfinancialstatementschapter.

Equityrisk

TheGroupisexposedtoequityriskontreasuryshares.Giventheshare price, it was not necessary to record a provision forwritedownat31December2020.

Legalrisks

TheGroup’soperationsarenotsubject tospecific regulations. Itsactivitiesdonotrequirespecific legalorregulatoryauthorisation.The Group is involved in a number of disputes in respect of itsbusiness.Theseshouldnothaveanysignificantnegativeimpactonthe Group’s financial position. To the Group’s knowledge, therewerenoexceptionaleventsorlitigationlikelytohaveasignificantnegative impact on the Group’s or its subsidiaries’ operations,assetsorresults,otherthanthosementionedinthehighlights.

Countryrisk

The country risk is analysed from two perspectives. The firstrelates to the distribution activitiesmost ofwhich takes place insaferegionssuchasEuropeandtheUnitedStates,asopposedtoregions that are themost exposed to economic, geopolitical andmonetary uncertainties like China, Latin America and theMiddleEast which represent less than 10% of the Group’s sales. Inaddition,theGroupwasnotnegativelyaffectedbyBrexitin2020.Thesecondperspectiverelatestotheproductionandprocurementactivitieswhicharemoreexposedthanthedistributionactivities,sinceSomfyhasproductionsitesinTunisiaandChina,andalargeproportionof itssuppliersofcomponentshavecloseconnectionswith Asia, andmore specifically China. In relation to this secondperspective,giventhelevelofrisk,businesscontinuityplanshavebeendevelopedinordertoreduceandcontrolthisrisk.

Non-financialrisks

Certain CSR challenges are found in the Group’smain risks (CSRpictogram). However, all the non-financial and financial risksrelatedtoclimatechangearedetailedonpages47and48aspartof the non-financial statement. The approach used for themapping of Group risks provides for the assessment of risksaccordingtotheirimpactandtheirlikelihoodofoccurrencetakinginto account the controlmeasures already in place. This is a netriskmeasurement-basedapproach.The approach is different when it concerns Corporate SocialResponsibility: the Group has decided to present the mainchallengesinaccordancewithanassessmentofthegrossrisks.Forthatreason,therisksinherentinCSRarenotdetailedperseinthischapteronriskfactors.

INSURANCEANDRISKCOVERAGE

As part of the risk management process, the Group has put inplaceapolicybasedonpreventionandtheprotectionofsitesandpeople in order to limit the likelihood of occurrence of potentialaccidents.The Group covers the main risks with the following insurancepolicies:

“propertydamage”,coveringbuildingsandtheircontentsinall–locations(equipment,goods, ITequipment)aswellasresultingmonetary and operational losses. The events insured are, as aminimum, fire, explosions, lightning, smoke, emissions, steam,impactsfromairborneobjects,vehiclecollisions,electricalrisks,storms, hurricanes, cyclones, snow, hail, water damage, frost,machine breakage, computer risks, malicious acts, acts ofvandalism, riots, popular movements and IT equipment theft,natural disasters, except where local circumstances make thisimpossible;“generalcivilliabilityrelatingtomonetaryconsequencesofan–insured entity’s liability following physical injury, propertydamageormoralprejudicecausedtoathirdpartyduringorinrelationtoitsoperations”;“corporateofficers’civilliability”;–“transportedgoods”.–

In addition, credit insurance contracts, both in France andinternationally, mitigate the consequences of customer default.Approximately90%ofsalesarecoveredbysuchcontracts.Due to the Group’s international presence, other contracts aretaken out locally to take into account any specific features orrestrictionsinthecountriesconcerned.



NON-FINANCIAL STATEMENT (ARTICLE L. 22-10-36 OF THE COMMERCIAL CODE)

Thenon-financialstatementispresentedinchapter3ofthisAnnualFinancialReportforeaseofreading. Itformsanintegralpartofthemanagementreport.

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

In2020, theResearchandDevelopmentactivitiesweregenerallycarried out in linewith the established roadmap. Somfy has notsloweditsR&Dinvestmenteffortsbuthasneverthelessadaptedtothe pandemic context by reprioritising projects, within achallengingsupplychainenvironment.At theendof the2020financialyear,Somfyhad17R&Dcentresand547engineers(420inFrance),20%ofwhomwerewomen.TheneworganisationoftheGroupbyfunctionwasrolledouttoitsR&D centres in 2020, as it was across the entire company. TheEngineeringfunction’sambitionistocontinuetoroll-outtheR&Defforts en masse and to improve the efficiency and speed withwhichnewrangesaredeveloped.TheGroupfiled27patentapplicationswiththepatentoffice INPI(InstitutNationaldelaPropriétéIndustrielle)whichhadpublished44of them in2019.This fall innewapplications is related to theCovid-19pandemic.At theendof2020,Somfyhadaportfolioof2,210registeredpatents.Thanks to continuing eco-design efforts, 57% of Somfy productssoldworldwidein2020wereActforGreencertified.ActforGreencertification is one of the levers of the Group’s environmentalprogramme aimed at reducing its carbon footprint. Somfy iscommittedtoreducingCO2emissionsthroughitsproductsandbyhelping to develop carbon sinks. By accelerating theimplementationofitsCSRstrategy,Somfyisworkingtoreduceitscarbonfootprintandthatofitscustomers.

71newproductsandservicesmarketedbytheGroupin2020Despiteanenvironmentdisruptedbythehealthcrisis,Somfyhascontinuedtodevelopandlaunchnewproducts.The2020financialyearsawthefollowingmajorinnovationscometomarket:

in line with its strategy of openness driven by the So Open–programme,andwiththeaimofimprovingtheuserexperiencearound the connected home, in December2020 Somfyannounced the compatibility of its home automation boxTaHomawith Apple’s HomeKit, the result of two years’ work.Either remotelyor fromhome,userscannowcontrolbyvoicetheir roller shutters, tilting sunscreens,external verticalblindsand automated patio awnings, using the Apple Home app orfromtheircarwithCarplay;

solution facilitates simple and secure ventilation every day,enabling Somfy to address the growing issue of air quality. Aspart of this launch, the Somfy air programme received dualrecognition: it secured “Solar Impulse Efficient Solution”certification (which recognises 1,000 effective and profitablesolutions for improving quality of life whilst simultaneouslyprotecting the environment), aswell as the award for the FFB(French Building Federation) Homes Division Challenge in theindustrial category (which recognises the most innovativeapproaches to meeting the major challenges of housing andlivingenvironments);

theSomfyairprogrammehastakenshapewiththemarketingof–the first Somfymotor for slidingwindows, Sliding air io. Aftermore than three years of work in collaboration with LiébotGroup, a major player in joinery in France, this newmotor isnow available on the Frenchmarket through its integration inCAIB and K-Line windows, with Méo to follow shortly. This

thedevelopmentof the InteriorProducts rangecontinuedand–focused on three strategic priorities: a range of motors withintegrated batteries for the home sector, offering installerseasierimplementation;silentproductsamongstthebestonthemarketacross theentire rangeofblindsandcurtains;andoneconnectedrangethatspecificallyenablesuserstomanagetheirSomfy products using voice control. The connected range ofSomfy Interior Products is available on the North Americanmarket, with the Zigbee 3.0 protocol, which is backed by analliance of more than 400 manufacturers, including Amazon,Apple,Google and IKEA, and in Europewith the interoperableio-homecontrol®protocol;theimprovedrangeofproductsenablinguserstocontrolSomfy–motors was the focus of specific efforts. Firstly in terms ofdesign, with the new range of Situo remote controls and thenew Inis wired switches, thereby accentuating Somfy’s brandimage. Secondly, in terms of technology, through the newZigbee control interfaces and the first bi-protocol remotecontrol (io/RTS). Lastly, Somfy has complemented its flagshiprange,Smoove,byofferingmultichannelversions(2&4);in 2020, alongside Apple, Google, Amazon, IKEA, Schneider–Electric and Signify (PhilipsHue), Somfy became one of thesponsorsoftheConnectedHomeoverIPproject,inwhichmorethan 200 businesses from all over the world took part. Thisworking group is developing and promoting the adoption of anewroyalty-freeconnectivitystandardtoincreasecompatibilitybetweenproductsinthesmarthome.TheaimoftheConnectedHomeover IPproject is to simplifydevelopmentsand improvethe consumerexperience. Theproject is built arounda sharedbelief:thatsmartproductsmustbesecure,reliableandeasytouse. The Connected Home over IP project heralds a newgenerationofproductswithevenhigherperceivedvalueforallstakeholders.



LIST OF EXISTING BRANCHES (ARTICLE L. 232-1 OF THE COMMERCIAL CODE)

Somfyhadnosuchbranchesat31December2020.

VALUE OF INTERCOMPANY LOANS GRANTED (ARTICLE L. 511-6 3 BIS OF THE MONETARY AND FINANCIAL CODE)

SomfySAhadnotgrantedanyintercompanyloansat31December2020.

INFORMATION ON PAYMENT TERMS (ARTICLE L. 441-6-1 OF THE COMMERCIAL CODE)

TradereceivablesspecifictoSomfySA’sactivityrepresentpaymenttermsgenerallylessthan45daysfromtheendofthemonth.

ArticleD.441l.-1°:Invoicesreceived,unpaidandoverdueatyear-end

ArticleD.441l.-2°:Invoicesissued,unpaidandoverdueatyear-end

0day(for

informa-tiononly)

1to30days

31to60days

61to90days

91daysor

more

Total(1day

ormore)

0day(for

informa-tiononly)

1to30days

31to60days

61to90days

91daysor

more

Total(1day

ormore)

(A)Latepaymentranges

Numberofinvoices

concerned29 – – – – – 17 –

Totalvalueofinvoices

concernedexc.VAT

1,355,513 – – – – – 754,315 – – – – –

Percentageoftotalvalueof

purchasesexc.VAToverthefinancialyear

14.11% – – – – –

Percentageofrevenueexc.VAToverthefinancialyear

20.18% – – – – –

(B)Invoicesexcludedfrom(A)relatingtocontestedorunrecordedtradepayablesandreceivables

Numberofinvoicesexcluded

– – – – – – – – – – – –

Totalvalueofinvoices

excludedexc.VAT

– – – – – – – – – – – –

(C)Standardpaymenttermsused(contractualorstatutoryperiod-ArticleL.441-6orArticleL.443-1oftheCommercialCode)

Paymenttermsusedfor

calculatinglatepayments

ContractualtermsR Contractualterms:Within10daysaftertheendofthemonthR

Statutoryterms* Statutoryterms*



INFORMATION ON THE DISTRIBUTION OF SHARE CAPITAL AND HOLDINGS

DISTRIBUTIONOFSHARECAPITAL(ARTICLEL.233-13OFTHECOMMERCIALCODE)—Tothebestofthecompany’sknowledge,thedistributionofsharecapitalandvotingrightsisasfollows:

Shareholdingstructureat31/12/20

Numberofshares

%sharecapital

Theoreticalvotingrights

%theoreticalvotingrights

VotingrightsatGeneralMeetings

%votingrightsatGeneral

Meetings

J.P.J.S.SCA* 19,480,340 52.65% 38,960,680 61.33% 38,960,680 63.96%

J.P.J.2SA** 3,409,030 9.21% 6,669,055 10.50% 6,669,055 10.95%

CompagnieFinancièreindustrielle*** 1,653,875 4.47% 3,307,750 5.21% 3,307,750 5.43%

Despaturefamilyandothers 1,565,268 4.23% 3,112,533 4.90% 3,112,533 5.11%

ManacorDevPteLtd 560,000 1.51% 560,000 0.88% 560,000 0.92%

TOTALSHAREHOLDERS’AGREEMENT 26,668,513 72.08% 52,610,018 82.82% 52,610,018 86.37%

Treasuryshares 2,616,125 7.07% 2,616,125 4.12% – –

Otherholdersofregisteredandbearershares 7,715,362 20.85% 8,300,899 13.07% 8,300,899 13.63%

TOTAL 37,000,000 100.00% 63,527,042 100.00% 60,910,917 100.00%

Limitedpartnershipwithsharecapital(registeredoffice:160boulevarddeFourmies,59100Roubaix)controlledbyPaulGeorgesDespatureandhis*childrenAlexisDespature,JeanGuillaumeDespature(ChairmanoftheManagementBoardofSomfySA)andMarieBavarel-Despature(memberoftheSupervisoryBoardofSomfySA).Limited company (registeredoffice:29 routede l’aéroport,1215Geneva15, Switzerland) controlledbyPaulGeorgesDespatureandhis children**Alexis Despature, Jean Guillaume Despature (Chairman of theManagement Board of Somfy SA) andMarie Bavarel-Despature (member of theSupervisoryBoardofSomfySA).Limited company incorporated in Luxembourg (registered office: 15, boulevard Roosevelt, L-2450 Luxembourg, Grand Duchy of Luxembourg)***controlledbyPatrickDespature.

InAugust2020,SilchesterInternationalInvestors,actingonbehalfoffundsunderitsmanagement,declaredthaton17August2020ithadaholdingof2,218,315sharesrepresenting6.00%ofthesharecapitalofSomfySA.Duetothelackofdisclosureregardingtheattainmentofupwardordownwardthresholdcrossings,thiscompanyisstillpresumedtoholdbetween5%and10%ofSomfySA’ssharecapital.To thebestof thecompany’sknowledgeandat thedateofpreparationof thisdocument,no shareholderother than thosementionedaboveholds,directlyorindirectly,aloneorinconcertwithothers,morethan5%ofthesharecapitalorvotingrightsofthecompany.Changestothislistduringthe2020financialyear,ifany,aredescribedbelowinthesection“DisclosureofshareholdingthresholdcrossingspursuanttoArticleL.233-7oftheCommercialCode”.

RECIPROCALHOLDINGS(ARTICLESL.233-29ETR.233-19OFTHECOMMERCIALCODE)—Therewerenoreciprocalholdingsasdefinedbycurrentregulationsatthedateofpreparationofthisreport.

EMPLOYEESHAREHOLDING(ARTICLEL.225-102OFTHECOMMERCIALCODE)—At31December2020,thesharesheldbyemployeesviatheSomfyFCPE(investmentfund)ordirectlyinregisteredformfollowingafreeshareallocationunderArticleL.22-10-59oftheCommercialCode(authorisedsubsequentto6August2015)totalled300,796Somfyshares,representing0.81%ofthesharecapital.



ACTIONINCONCERTANDRETENTIONAGREEMENTS—ACTIONINCONCERT

On3June2013,thelimitedpartnershipwithsharecapitalJ.P.J.S.,thelimitedcompaniesJ.P.J.2andManacorandcertainmembersofthe Despature family concluded a shareholders’ agreementconstitutinganactioninconcertbetweenthem,inrelationtothecompanySomfySA.Themainclausesoftheagreementprovide:Actioninconcert:thepartiesconfirmtheirwishtoact inconcertwithinthemeaningofArticleL.233-10oftheCommercialCodetoimplementacommonpolicywithregardtoSomfySA.Tothatend,the parties undertake to make every effort and to consult oneanother before every vote in the General Meeting of Somfy SAshareholders on resolutions relating to the appointment ofmembersoftheSupervisoryBoardormodificationofthemodeofadministration or management of the company and anytransactioninthecapitalofSomfySAwithaviewtoestablishingacommonposition.Maintainingtheequityholding:thepartiesundertaketomaintaintheiroverallequityholding inSomfySAatmorethan50%of thesharecapitalandvotingrightsofthiscompany.Duration: theseundertakings aremade for aperiodof ten yearsfrom the signature of the agreement, namely 3June 2013. Anydecisiontoreducethetermoftheagreementwillbemadebya¾majority of the Somfy SA shares held by the parties, it beingunderstoodthatinthecaseofseparationoftheshares,thevotingrightwillbelongtotheusufructuary.

COLLECTIVERETENTIONAGREEMENTS

A collective retention agreement relating to 64.93%of the sharecapital of Somfy SA and more than 20% of the voting rights ofshares issued was signed on 31December 2015 by severalshareholders, including Management Board members JeanGuillaume Despature and Pierre Ribeiro, as well as SupervisoryBoard members Victor Despature, Anthony Stahl and MichelRollier, in accordance with Article885I bis of the General TaxCode, for a period of two years from 31December 2015,automaticallyextendedindefinitelyafterthistwo-yearperiod.Furthermore,thecompanyisawareof:

six collective retention agreements relating to a total of–between49.33%and54.23%ofSomfySA’ssharecapital,signedbyseveralshareholders inaccordancewithArticle787Bof theGeneralTaxCode,foranindeterminateperiodfromthedateofregistration unless one of the signatories gives notice oftermination;onecollectiveretentionagreementrelatingto52.91%ofSomfy–SA’ssharecapital,signedbyseveralshareholdersinaccordancewithArticle787BoftheGeneralTaxCode, foraperiodoftwoyearsfromthedateofregistration.

BYLAWSPROVISIONSRELATINGTODOUBLEVOTINGRIGHTS(EXCERPTOFARTICLE29OFTHEBYLAWS)—“Thevotingrightattachedtoshares isproportionaltothecapitalthattheyrepresent.Allcapitalanddividendshareshavethesameparvalueandentitletheirownertoonevote.A voting right that is double that conferred on other shares isallocatedtoallfullypaidsharesthathavebeendulyregisteredforatleastfouryearsinthenameofthesameshareholderattheendofthecalendaryearprecedingthatofeachGeneralMeeting.

In thecaseofa capital increaseby thecapitalisationof reserves,profitsorissuepremiums,registeredsharesgrantedfreeofchargeto a shareholder in exchange for existing shares, which alreadybenefitfromthisright,willbeentitledtothesamedoublevotingright.All shares converted into bearer shares orwhose ownership hasbeen transferred shall lose their entitlement to a double votingright,exceptininstancesprovidedforbylaw.”

DISCLOSUREOFSHAREHOLDINGTHRESHOLDCROSSINGSDURINGTHE2020FINANCIALYEAR,PURSUANTTOARTICLEL.233-7OFTHECOMMERCIALCODE—Asof21April2020,theDepositandConsignmentOffice,viaCDCCroissance, informed the company that it had exceeded thestatutory threshold of 1% of the voting rights in Somfy, thisthresholdcrossingresultingfromthepurchaseofshares.InAugust2020,SilchesterInternationalInvestors,actingonbehalfoffundsunderitsmanagement,declaredthaton17August2020ithadaholdingof2,218,315sharesrepresenting6.00%ofthesharecapitalofSomfySA.

INFORMATIONONTHEBUYBACKOFTREASURYSHARES(ARTICLEL.225-211OFTHECOMMERCIALCODE)—The companyhas implemented several successive sharebuybackprogrammes.Themostrecentbuybackprogrammewas launchedin 2020; it was authorised by the Combined GeneralMeeting of24June2020 in its15thresolution,sitting inordinarysession,andhadthefollowingobjectives:

tostimulatethesecondarymarketorensuretheliquidityofthe–Somfyshare,bywayofaninvestmentservicesproviderwithinaliquidity contract that complies with practices recognised byregulations, it being specified that within this framework thenumber of shares considered for the calculation of the limitspecifiedabovecorrespondstothenumberofsharespurchasedlessthenumberofsharesresold;toretainthesharespurchasedandsubsequentlyexchangethem–or use them as payment within the framework of potentialacquisitions;toensurethecoverageofstockoptionplansand/orfreeshare–allocation plans (or similar) granted to employees and/orcorporate officers of the Group, as well as all other sharesallocatedunderacompanyorgroupsavingsscheme(orsimilar),inrelationtoemployeeprofit-sharingand/oranyotherformofallocationtoemployeesand/orcorporateofficersoftheGroup;to covermarketable securities giving right to the allocation of–companyshares,inaccordancewithapplicableregulations;toproceedwiththepossiblecancelationofsharesacquired, in–accordancewiththeauthorisationgrantedor tobegrantedbytheExtraordinaryGeneralMeeting.

Suchsharepurchasescouldbeeffectedbyallmeans,includingbymeansof acquiringblocksof shares andat any times consideredappropriatebytheManagementBoard.The company reserved the right to use options or derivativeinstruments,inaccordancewithapplicableregulations.Themaximumpurchasepricewassetat€170pershare,withthemaximum amount of the share buyback programme set at€184,170,010, taking account of the 1,083,353 treasury sharesheldat31December2019.



During the financial year just ended, on the basis of theauthorisations given by theGeneralMeetings of 2019 and 2020,the company bought back 28,717shares at an average price of€103.28andsold29,239sharesatanaveragepriceof€91.27.All of the 28,717shares acquired were allocated to the liquidityobjective.Notradingfeeswerepaidduringthefinancialyear.

The company held 2,616,125 of its own shares at 31December2020, representing 7.07% of the share capital; the value of thepurchasepriceofoneshareamountedto€37.59foraparvalueof€0.20 each, representing a total nominal value of €523,225.00(€1,422.80 for the liquidity contract, €244,354 to be retained forfuture acquisition transactions and €277,448.20 to cover sharepurchaseoptionplansand/orfreeshareallocationplans).

INFORMATIONONINVESTMENTSANDCONTROLLEDCOMPANIES—INVESTMENTSINFRENCHCOMPANIESDURINGTHEFINANCIALYEARENDED31DECEMBER2020(ARTICLEL.233-6OFTHECOMMERCIALCODE)

Companyname

Directcontrol Indirectcontrol

Numberofshares %sharecapital Numberofshares %sharecapital

– – – – –

NAMESOFCOMPANIESDIRECTLYORINDIRECTLYCONTROLLEDANDTHEPORTIONOFSOMFYSA’SSHARECAPITALHELDBYTHEM(ARTICLEL.233-13OFTHECOMMERCIALCODE)

NoneofthecompaniescontrolledbySomfySAheldsharesinSomfySAatthedateofpreparationofthisreport.

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

Thecompany isaware that the following transactions fallingwithin thescopeofArticleL.621-18-2of theMonetaryandFinancialCodehavebeencarriedoutduringthepastfinancialyear:

€

Purchases

Registrantandnatureoftransaction Amount

J.P.J.2,relatedtoJeanGuillaumeDespature,ChairmanoftheManagementBoardandMarieBavarel-Despature,memberoftheSupervisoryBoard

Totalamountofacquisition 2,285,457

Averageunitprice 70.68

Numberofshares 32,335

TOTALPURCHASES 2,285,457



APPROVAL OF THE PARENT COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (RESOLUTIONS 1 AND 2)

Wewouldaskyoutoapprovetheparentcompanyfinancialstatementsfortheyearended31December2020,whichshowanetprofitof€100,960,384.65,andtheconsolidatedfinancialstatementsfortheyearended31December2020,whichshowanetprofit(Groupshare)of€213,008,000.00,assubmitted.

INFORMATION ON NON-DEDUCTIBLE CHARGES (ARTICLES 39-4 AND 223 IV OF THE GENERAL TAX CODE)

The financial statements for the financial year ended 31December 2020 do not include any non-allowable chargeswith regard to theincometaxbase,asdefinedbyArticles39-4and223IVoftheGeneralTaxCode.

ALLOCATION OF NET PROFIT

The Management Board proposes to allocate the net profit of €100,960,384.65 for the year ended 31December 2020, increased byretainedearningsof€3,273,611.25,toatotalof€104,233,995.90,asfollows:

allocationtoshareholdersofagrossdividend–of€1.85pershare,being€1.85x37,000,000shares €68,450,000.00

transfertooptionalreserve– €35,783,995.90

€104,233,995.90

Agrossdividendof€1.85willbedistributedforeachsharewithaparvalueof€0.20.WhenitispaidtoindividualswhoaretaxresidentsinFrance,thedividendissubjecttoasinglefixed-levydeductionatsourceonthegross dividend at the flat rate of 12.8% (Article200 A of theGeneral Tax Code), or at the express, irrevocable andcomprehensive wishes of the taxpayer, to income tax calculatedaccording to a sliding scale after notably an allowance of 40%(Articles200A,13,and158oftheGeneralTaxCode).Thedividendisalsosubjecttosocialsecuritycontributionsattherateof17.2%.Shares held by the company on the ex-dividend date are notentitled to dividends, with the corresponding amount of unpaiddividendsbeingtransferredtoretainedearnings.Thedividendwillbepayableon10June2021andtheex-dividenddatewillbe8June2021.

Inaccordancewithlegalprovisions,itshouldbenotedthatthefollowingdividendswerepaidduringthelastthreefinancialyears:

Financialyear

Revenueseligiblefortaxrebate Revenuenoteligiblefortaxrebate

Dividends Otherdistributedearnings

2017 €44,645,450.20*being€1.30**pershare – –

2018 €48,094,109.00*being€1.40pershare – –

2019 €42,976,388.75*being€1.25***pershare – –

Doesnotincludeunpaiddividendsattributabletotreasurysharesandtransferredtoretainedearnings.*Theshareparvaluewasdividedbyfiveon24May2017.Sincethatdate,sharecapitalcomprises37,000,000shareswithaparvalueof€0.20each.**The2019dividendamountwasreviseddownwardsattheGeneralMeetingof24June2020.***

COMBINED GENERAL MEETING OF 2 JUNE 2021

ORDINARYSESSION—

Approval of the parent company financial statements for the1.yearended31December2020.Approvaloftheconsolidatedfinancialstatementsfortheyear2.ended31December2020.Allocation of net profit for the financial year and setting of3.dividend.Special report of the Statutory Auditors on regulated4.commitments-Notingtheabsenceofnewagreements.

Approval of the information referred to in paragraph I of5.ArticleL.22-10-9oftheCommercialCode.Approval of the fixed, variable and exceptional items6.comprisingtotalremunerationandbenefitsofanykindpaidorallocated during the financial year just ended to JeanGuillaumeDESPATURE,ChairmanoftheManagementBoard.Approval of the fixed, variable and exceptional items7.comprisingtotalremunerationandbenefitsofanykindpaidorallocated during the financial year just ended to PierreRIBEIRO, member of the Management Board and ChiefFinancialOfficer.



Approval of the fixed, variable and exceptional items8.comprisingtotalremunerationandbenefitsofanykindpaidorallocated during the financial year just ended to MichelROLLIER,ChairmanoftheSupervisoryBoard.Approval of the remunerationpolicy for theChairmanof the9.Management Board and the member(s) of theManagementBoard.AuthorisationtobegrantedtotheManagementBoardorthe10.Board of Directors, as applicable, for the buyback by thecompanyof its own sharespursuant toArticle L. 22-10-62ofthe Commercial Code, duration of the authorisation,objectives,termsandconditions,cap.

EXTRAORDINARYSESSION—

Change to the company’s administration and management11.formbyadoptingtheBoardofDirectorsform.AuthorisationtobegrantedtotheManagementBoardorthe12.Board of Directors, as applicable, to grant stock options tosalaried employees and/or certain corporate officers of thecompanyorrelatedcompanies,durationoftheauthorisation,cap,exerciseprice,maximumoptionterm.Powerstocompleteformalities.13.

RESOLUTIONSTOBESUBMITTEDFORVOTINGINTHEEVENTOFAPPROVALOFTHE11THRESOLUTION—EXTRAORDINARYSESSION

Approvalofthenewwordingofthecompany’sbylaws.14.Transfer to the Board of Directors of the authorisations15.grantedtotheManagementBoardbytheGeneralMeeting.

ORDINARYSESSION

AppointmentofJeanGuillaumeDESPATUREasDirector.16.AppointmentofFlorenceNOBLOTasDirector.17.AppointmentofMichelROLLIERasDirector.18.AppointmentofSophieDESORMIÈREasDirector.19.AppointmentofAnthonySTAHLasDirector.20.AppointmentofPauleCELLARDasDirector.21.AppointmentofBertrandPARMENTIERasDirector.22.AppointmentofMarieBAVAREL-DESPATUREasDirector.23.FixedannualsumtobeallocatedtomembersoftheBoardof24.Directors.Approval of the remunerationpolicy for theChairmanof the25.BoardofDirectors.Approval of the remuneration policy for the Chief Executive26.Officer.Approval of the remuneration policy for the Deputy Chief27.ExecutiveOfficer.ApprovaloftheremunerationpolicyfortheDirectors.28.

RESOLUTIONSTOBESUBMITTEDFORVOTINGINTHEEVENTOFREJECTIONOFTHE11THRESOLUTION—ORDINARYSESSION

RenewalofthetermofofficeofFlorenceNOBLOTasmember29.oftheSupervisoryBoard.Renewal of the term of office of Sophie DESORMIÈRE as30.memberoftheSupervisoryBoard.RenewalofthetermofofficeofPauleCELLARDasmemberof31.theSupervisoryBoard.Non-replacement and non-renewal of the term of office of32.VictorDESPATUREasmemberoftheSupervisoryBoard.Approval of the remuneration policy for members of the33.SupervisoryBoard.

APPROVALOFTHEINFORMATIONREFERREDTOINPARAGRAPHIOFARTICLEL.22-10-9OFTHECOMMERCIALCODE(resolution5)—You will be asked to approve the information included inparagraph I of Article L. 22-10-9 of the Commercial Code,presentedtheparagraph“InformationreferredtoinparagraphIofArticle L. 22-10-9 of the Commercial Code” of the report oncorporate governance included in the 2020 Annual FinancialReport.

APPROVALOFTHEFIXED,VARIABLEANDEXCEPTIONALITEMSCOMPRISINGTOTALREMUNERATIONANDBENEFITSOFANYKINDPAIDORALLOCATEDDURINGTHEFINANCIALYEARJUSTENDEDTOJEANGUILLAUMEDESPATURE,CHAIRMANOFTHEMANAGEMENTBOARD(resolution6)—It will be proposed that you approve the fixed, variable andexceptional items comprising total remuneration and benefits ofanykindpaidorallocatedduring the financialyear justended toJeanGuillaumeDESPATURE,ChairmanoftheManagementBoard,as presented in the report on corporate governance included inthe2020AnnualFinancialReport,paragraph“Fixed,variableandexceptional items comprising total remuneration and benefits ofanykindpaidorallocatedduring the financialyear justended tothe Chairman of the Management Board, members of theManagementBoardandtheChairmanoftheSupervisoryBoard”.

APPROVALOFTHEFIXED,VARIABLEANDEXCEPTIONALITEMSCOMPRISINGTOTALREMUNERATIONANDBENEFITSOFANYKINDPAIDORALLOCATEDDURINGTHEFINANCIALYEARJUSTENDEDTOPIERRERIBEIRO,MEMBEROFTHEMANAGEMENTBOARDANDCHIEFFINANCIALOFFICER(resolution7)—It will be proposed that you approve the fixed, variable andexceptional items comprising total remuneration and benefits ofanykindpaidorallocatedduring the financialyear justended toPierre RIBEIRO, member of the Management Board and ChiefFinancial Officer, as presented in the report on corporategovernance included in the 2020 Annual Financial Report,paragraph“Fixed,variableandexceptional itemscomprisingtotalremunerationandbenefitsofanykindpaidorallocatedduringthefinancial year just ended to the Chairman of the ManagementBoard,membersof theManagementBoardand theChairmanoftheSupervisoryBoard”.



APPROVALOFTHEFIXED,VARIABLEANDEXCEPTIONALITEMSCOMPRISINGTOTALREMUNERATIONANDBENEFITSOFANYKINDPAIDORALLOCATEDDURINGTHEFINANCIALYEARJUSTENDEDTOMICHELROLLIER,CHAIRMANOFTHESUPERVISORYBOARD(resolution8)—It will be proposed that you approve the fixed, variable andexceptional items comprising total remuneration and benefits ofanykindpaidorallocatedduring the financialyear justended toMichelROLLIER,ChairmanoftheSupervisoryBoard,aspresentedinthereportoncorporategovernanceincludedinthe2020AnnualFinancialReport,paragraph“Fixed,variableandexceptionalitemscomprising total remuneration and benefits of any kind paid orallocatedduring the financial year justended to theChairmanoftheManagementBoard,membersoftheManagementBoardandtheChairmanoftheSupervisoryBoard”.

APPROVALOFTHEREMUNERATIONPOLICYFORTHECHAIRMANOFTHEMANAGEMENTBOARDANDTHEMEMBER(S)OFTHEMANAGEMENTBOARD(resolution9)—Itwillbeproposed thatyouapprove the remunerationpolicy forthe Chairman and member(s) of the Management Board aspresented in the reporton corporategovernance included in the2020 Annual Financial Report (paragraph “Corporate officers’remunerationpolicy”).Thispolicywillonlyapplytotheperiodfrom1January2021until1June2021intheeventofapprovalofthe11thresolution.Forthisperiod, the qualitative criteria relating to the variableremuneration for 2021 of the Chairman and members of theManagementBoardhaschangedinrelationtothepolicyapprovedatthe2020GeneralMeeting,andforthisreasonitisnecessaryforyoutovoteonthispolicy,evenintheeventofapprovalofthe11th

resolution.

AUTHORISATIONTOBEGRANTEDTOTHEMANAGEMENTBOARDORTHEBOARDOFDIRECTORS,ASAPPLICABLE,FORTHEBUYBACKBYTHECOMPANYOFITSOWNSHARESPURSUANTTOARTICLEL.22-10-62OFTHECOMMERCIALCODE–DURATIONOFTHEAUTHORISATION,OBJECTIVES,TERMSANDCONDITIONS,CAP(resolution10)—Asharebuybackplanforaperiodof18monthswillbesubmittedforyourapproval.Thisplanwouldreplacethecurrentprogramme,whichwouldbeterminatedearly.ItwouldallowtheManagementBoardor theBoardofDirectors,asapplicable, topurchaseup to10%of the shares of the company, if necessary restated for anypotential capital increase or decrease transactions that may becarriedoutoverthetimeframeoftheprogramme.This authorisationwould supersede the authorisation granted tothe Management Board by the 15th resolution to the GeneralMeetingof24June2020,sittinginordinarysession.Theobjectivesofthisprogrammewouldbe:

tostimulatethesecondarymarketorensuretheliquidityofthe–Somfyshare,bywayofaninvestmentservicesproviderwithinaliquidity contract that complies with practices recognised byregulations, it being specified that within this framework thenumber of shares considered for the calculation of the limitspecifiedabovecorrespondstothenumberofsharespurchasedlessthenumberofsharesresold;

toretainthesharespurchasedandsubsequentlyexchangethem–or use them as payment within the framework of potentialacquisitions;toensurethecoverageofstockoptionplansand/orfreeshare–allocation plans (or similar) granted to employees and/orcorporate officers of the Group, as well as all other sharesallocatedunderacompanyorgroupsavingsscheme(orsimilar),inrelationtoemployeeprofit-sharingand/oranyotherformofallocationtoemployeesand/orcorporateofficersoftheGroup;to covermarketable securities giving right to the allocation of–companyshares,inaccordancewithapplicableregulations;to proceed with the possible cancellation of shares acquired,–subjecttotheauthorisationgrantedbytheGeneralMeetingofshareholders of 24 June 2020 in its 16th resolution, sitting inextraordinarysession.

Suchsharepurchasescouldbeeffectedbyallmeans,includingbymeansof acquiringblocksof shares andat any times consideredappropriatebytheManagementBoardortheBoardofDirectors,asapplicable.Thecompanywouldreservetherighttouseoptionsorderivativeinstruments,inaccordancewithapplicableregulations.Weproposetosetthemaximumpurchasepriceat€200pershare.The maximum value of the transaction, taking account of the1,083,875 treasury shares held at 31 December 2020, wouldthereforebesetat€216,775,000.

CHANGETOTHECOMPANY’SADMINISTRATIONANDMANAGEMENTFORMBYADOPTINGTHEBOARDOFDIRECTORSFORM(resolution11)—Weproposechangingtheadministrationandmanagementformofour company to adopt the form with a Board of Directors,replacingthatwithaManagementBoardandaSupervisoryBoard.This change would help to strengthen the Group’s agility andfoundations, achieving a better balance between strategic visionand operational excellence, at a time of many challenges andsignificant opportunities, due in particular to the acceleration ofthe digital and environmental transitions that have brought thehomebacktotheforefrontofconsumers’attention.We remind you that with this form of administration of LimitedCompanies, the company is managed by a Board of Directorscomprising a minimum of three and a maximum of eighteenmembers.TheBoardofDirectors,actingcollectively,isvestedwiththemostextensivepowerstoactinallcircumstancesinthenameofthecompany.The Board of Directors shall elect from among its members aChairmanwhomustbeanindividual.GeneralManagement is carried out, under his/her responsibility,either by the Chairman of the Board of Directors or by anotherindividual selected from amongst the members of the Board oroutsideit,whobearsthetitleofChiefExecutiveOfficer.The Board of Directors chooses between the two methods ofexercising General Management. It can modify its choice at anytime. In each case, it informs shareholders and third partiesaccordinglypursuanttoapplicableregulations.The Board of Directors’ mission is to determine the strategicdirection of the company’s operations and to oversee theirimplementation, inaccordancewith itscorporatepurpose, takinginto consideration the social and environmental challenges of itsbusiness. Subject to the powers expressly conferred to theShareholders’ General Meetings and within the limit of thecorporatepurpose,ithandlesanymatterspertainingtotheproperfunctioning of the company and settles matters concerning itthroughitsdeliberations.Initsrelationshipswiththirdparties,thecompanyshallbeboundevenbytheactsoftheBoardofDirectorsthatdonotfallwithinthescopeofthecorporatepurpose,unlessitcanprovethatthethirdpartyknewthattheactwentbeyondthis



purposeorthattheycouldnothavebeenunawareofitgiventhecircumstances. TheBoardofDirectors carriesout the checksandverificationsitdeemsappropriate.As a result of the change to the company’s administration andmanagement form, you will also be asked to take note of thecontinuation of the terms of the incumbent Principal StatutoryAuditorsforthedurationoftheirtermsoriginallyset,namely:

the firmErnst&YoungetAutresuntil theendof theOrdinary–GeneralMeeting tobeheld in2022andcalled toapprove thefinancialstatements forthefinancialyearending31December2021;thefirmKPMGSAuntiltheendoftheOrdinaryGeneralMeeting–to be held in 2022 and called to approve the financialstatementsforthefinancialyearendingDecember2021.

AUTHORISATIONTOBEGRANTEDTOTHEMANAGEMENTBOARDORTHEBOARDOFDIRECTORS,ASAPPLICABLE,TOGRANTSTOCKOPTIONSTOSALARIEDEMPLOYEESAND/ORCERTAINCORPORATEOFFICERSOFTHECOMPANYORRELATEDCOMPANIES–DURATIONOFTHEAUTHORISATION–CAP–EXERCISEPRICE–MAXIMUMOPTIONTERM(resolution12)—ItwillbeproposedthatyouvoteontheauthorisationtobegiventotheManagementBoardortheBoardofDirectors,asapplicable,foraperiodof38months,tograntstockoptionstoemployees,tosome of them or to certain categories of employees, and/orcorporate officers as defined by law, of the company or relatedcompanies or affiliated economic interest groups under theconditionsofArticleL.225-180oftheCommercialCode.The total number of options that may be granted by theManagementBoardortheBoardofDirectors,asapplicable,underthisauthorisationmaynotentitlebeneficiaries topurchasemorethan 1.5% of the share capital outstanding on the date of thisMeeting, it being specified that this limit will count towards thetotalnumberofsharesthatmaybegrantedfreeofchargebytheManagementBoardortheBoardofDirectors,asapplicable,underthe authorisation granted by the 12th resolution to the GeneralMeeting of 22 May 2019, sitting in extraordinary session, andunder anyother similar subsequent authorisation grantedby theGeneralMeeting.ThepurchasepriceofthesharesbythebeneficiarieswouldbesetonthedateoptionsaregrantedbytheManagementBoardortheBoardofDirectors,asapplicable,pursuanttoregulations,andmaynotbe lowerthantheaverageclosingpriceofthe last20tradingdaysoftheshareonEuronextParisprecedingthedateoptionsareallocated.The term of the options set by the Management Board or theBoardofDirectors, as applicable,maynotexceedaperiodof sixyearsfromtheirdateofallocation.As such, the Management Board or the Board of Directors, asapplicable,wouldhave,within the limits set above, all necessarypowers to determine the other conditions and arrangements fortheallocationoftheoptionsandtheirexerciseandnotablytosetthe conditions under which the options will be granted and toapprove the list or categories of beneficiaries as provided forabove, to set the period(s) during which the options therebygrantedmaybeexercised,provideforthecapacitytotemporarilysuspendtheexerciseofoptionsforamaximumofthreemonthsintheeventoffinancialtransactionsinvolvingtheexerciseofarightattached to the shares, and generally do anything that may berequiredinthisregard.

RESOLUTIONSTOBESUBMITTEDFORVOTINGINTHEEVENTOFAPPROVALOFTHE11THRESOLUTIONOFTHISGENERALMEETING—Thefollowingresolutionsshallonlybeputtothevoteintheeventof approval of the 11th resolution relating to the change to thecompany’sadministrationandmanagementformbyadoptingthelegalformofaLimitedCompanywithaBoardofDirectors.

APPROVALOFTHENEWWORDINGOFTHECOMPANY’SBYLAWS(resolution14)

As part of the plan to change the company’s administration andmanagement form, we will submit to you the draft bylaws thatwouldgovernthecompanyinitslegalformofaLimitedCompanywith a Board of Directors, it being specified that other than theamendmentsnecessaryfortheadjustmentsrequiredbythisformofgovernance, youwillbeasked to remove from thebylaws thereferenceaccording towhich“TheOrdinaryGeneralMeetinghassole authority to decide on or authorise the issue of ordinarybonds”, so that theBoardofDirectorshas thecapacity todecideonorauthorisetheissueofordinarybonds,inaccordancewiththeprovisionsofArticleL.228-40oftheCommercialCode.Youwillbeasked,asaresultoftheadoptionofthelegalformofaLimited Company with a Board of Directors, to adopt, article byarticle, and then in its entirety, the new wording of the bylaws(incorporating the changes inherent in the adoption of thecompany’s new administration andmanagement form aswell asthe specific amendment detailed above), which will govern thecompanyifyouapproveit.It is specified that the amendments to the bylaws make nochangestothecorporatecontractlikelytoleadtothecreationofanew moral entity and that the overhaul of the bylaws, if youapproveit,willhaveanimmediateeffect.

TRANSFERTOTHEBOARDOFDIRECTORSOFTHEAUTHORISATIONSGRANTEDTOTHEMANAGEMENTBOARDBYTHEGENERALMEETING(resolution15)

You will be asked, as a result of the change to the company’sadministration and management form covered by the 11th

resolution and subject to its approval, to acknowledge that theauthorisations previously granted by theGeneralMeeting to theManagement Board pursuant to the resolutions covered below,willnowbenefittheBoardofDirectors,fortheremainderoftheirterm:

the authorisation to cancel the shares bought back by the–company under the provisions of Article L. 225-209 of theCommercial Code (recodified in Article L. 22-10-62 of theCommercialCodewitheffectfrom1January2021),grantedbythe CombinedGeneralMeeting of 24 June 2020 as part of itssixteenthordinaryresolution;the authorisation to allocate free of charge existing shares for–the benefit of salaried members of staff of the company orcompanies related to it either directly or indirectly within themeaningofArticleL.225-197-2oftheCommercialCodeand/orcorporate officers who fulfil the criteria set by ArticleL.225-197-1oftheCommercialCode,grantedbytheCombinedGeneral Meeting of 22 May 2019 as part of its twelfthextraordinaryresolution.



APPOINTMENTOFTHEDIRECTORS(resolutions16to23)

Intheeventofapprovalofthe11th resolution,thechangetotheadministration and management form will trigger the automaticexpiryofthetermsofofficeofallmembersoftheSupervisoryandManagement Boards and you will then be asked to appoint, fordurationsof termsofofficeofone, two, threeand fouryears,asappropriate,soastoensuretheyarestaggeredpursuanttoArticle14oftherecentlyamendedbylaws,thefollowingDirectors:

each for a period of four years, to expire at the end of the–General Meeting called in 2025 to approve the financialstatementsfortheyearthenended:

JeanGuillaumeDESPATURE,●FlorenceNOBLOT,●SophieDESORMIÈRE,●PauleCELLARD;●

each foraperiodof threeyears,pursuant to theprovisionsof–Article 14 of the bylaws, to expire at the end of the GeneralMeetingcalled in2024toapprovethe financial statements fortheyearthenended:

BertrandPARMENTIER,●MarieBAVAREL-DESPATURE;●

foraperiodof twoyears,pursuant to theprovisionsofArticle–14of thebylaws, toexpireat theendof theGeneralMeetingcalled in2023toapprovethefinancialstatements for theyearthenended:

AnthonySTAHL;●foraperiodofoneyear,pursuanttotheprovisionsofArticle14–ofthebylaws,toexpireattheendoftheGeneralMeetingcalledin 2022 to approve the financial statements for the year thenended:

MichelROLLIER.●

Independenceandgenderparity

It is specified that the Supervisory Board considers that FlorenceNOBLOT, Sophie DESORMIÈRE, Paule CELLARD, Michel ROLLIERand Bertrand PARMENTIER all qualify as independent membersunderMiddlenextCodecriteria.Should these appointments be approved, the Board of Directorswouldbecomprisedof:

4men and 4 women, in compliance with gender parity rules,–and5 independent members, in accordance with the–recommendationsoftheMiddlenextCode.

Expertise,experienceandskills

The information concerning the expertise and experience of theproposed members of the Board of Directors is detailed in theparagraph “Expertise and experience of members of theSupervisoryBoard”ofthereportoncorporategovernancewhichisincludedinthe2020AnnualFinancialReport.Weinformyouthat,inaccordancewiththelaw,atitsfirstsessionheldattheendoftheGeneralMeeting,theBoardofDirectorswillappoint its Chairman and will select the method of exercisingGeneralManagement.For your information,we note that it is at this stage consideredthat the functionsof theChairmanof theBoardofDirectorsandthe Chief Executive Office be separated, and that the role ofChairmanoftheBoardofDirectorsbeentrustedtoJeanGuillaumeDESPATUREand thatofCEObeentrusted toPierreRIBEIRO.TheappointmentofValérieDIXMIERasDeputyChiefExecutiveOfficerin charge of People, Culture and Organisation, is also beingconsidered.

FIXEDANNUALSUMTOBEALLOCATEDTOMEMBERSOFTHEBOARDOFDIRECTORS(resolution24)

Intheeventofapprovalofthe11thresolution,youwillbeaskedtoset the annual fixed amount to be allocated to Directors at€700,000 in respectof the current financial yearanduntil anewdecisionismade.

APPROVALOFTHEREMUNERATIONPOLICYFORTHECHAIRMANOFTHEBOARDOFDIRECTORS(resolution25)

Intheeventofapprovalofthe11thresolution,itwillbeproposedthatyouapprovetheremunerationpolicyfortheChairmanoftheBoard of Directors, as presented in the report on corporategovernance included in the 2020 Annual Financial Report(paragraph“Corporateofficers’remunerationpolicy”).

APPROVALOFTHEREMUNERATIONPOLICYFORTHECHIEFEXECUTIVEOFFICER(resolution26)

Intheeventofapprovalofthe11thresolution,itwillbeproposedthatyouapprovetheremunerationpolicy fortheChiefExecutiveOfficer, as presented in the report on corporate governanceincluded in the 2020 Annual Financial Report (paragraph“Corporateofficers’remunerationpolicy”).

APPROVALOFTHEREMUNERATIONPOLICYFORTHEDEPUTYCHIEFEXECUTIVEOFFICER(resolution27)

Intheeventofapprovalofthe11thresolution,itwillbeproposedthat you approve the remuneration policy for the Deputy ChiefExecutive Officer, as presented in the report on corporategovernance included in the 2020 Annual Financial Report(paragraph“Corporateofficers’remunerationpolicy”).

APPROVALOFTHEREMUNERATIONPOLICYFORTHEDIRECTORS(resolution28)

Intheeventofapprovalofthe11thresolution,itwillbeproposedthat you approve the remuneration policy for the Directors, aspresented in the reporton corporategovernance included in the2020 Annual Financial Report (paragraph “Corporate officers’remunerationpolicy”).

RESOLUTIONSTOBESUBMITTEDFORVOTINGINTHEEVENTOFREJECTIONOFTHE11THRESOLUTIONOFTHISGENERALMEETING—Thefollowingresolutionsshallonlybeputtothevoteintheeventof rejection of the 11th resolution relating to the change to thecompany’sadministrationandmanagementformbyadoptingthelegalformofaLimitedCompanywithaBoardofDirectors.

RENEWALOFTHETERMOFOFFICEOFFLORENCENOBLOTASMEMBEROFTHESUPERVISORYBOARD(resolution29)

WeherebyremindyouthatFlorenceNOBLOT’stermofofficeasamemberof the SupervisoryBoardexpires at theendof thenextAnnualGeneralMeeting.Intheeventofrejectionofthe11thresolution,itwillbeproposedthatyourenewthetermofofficeofFlorenceNOBLOTasmemberoftheSupervisoryBoardforaperiodoffouryears,toexpireattheendoftheGeneralMeetingcalledin2025toapprovethefinancialstatementsfortheyearthenended.



RENEWALOFTHETERMOFOFFICEOFSOPHIEDESORMIÈREASMEMBEROFTHESUPERVISORYBOARD(resolution30)

Wehereby remindyou that SophieDESORMIÈRE’s termofofficeas amember of the Supervisory Board expires at the endof thenextAnnualGeneralMeeting.Intheeventofrejectionofthe11thresolution,itwillbeproposedthat you renew the term of office of Sophie DESORMIÈRE asmember of the Supervisory Board for a period of four years, toexpireattheendoftheGeneralMeetingcalledin2025toapprovethefinancialstatementsfortheyearthenended.

RENEWALOFTHETERMOFOFFICEOFPAULECELLARDASMEMBEROFTHESUPERVISORYBOARD(resolution31)

Wehereby remind you that Paule CELLARD’s term of office as amemberof the SupervisoryBoardexpires at theendof thenextAnnualGeneralMeeting.Intheeventofrejectionofthe11thresolution,itwillbeproposedthatyourenewthetermofofficeofPauleCELLARDasmemberoftheSupervisoryBoard foraperiodof fouryears, toexpireat theendoftheGeneralMeetingcalledin2025toapprovethefinancialstatementsfortheyearthenended.

NON-REPLACEMENTANDNON-RENEWALOFTHETERMOFOFFICEOFVICTORDESPATUREASMEMBEROFTHESUPERVISORYBOARD(resolution32)

WeherebyremindyouthatVictorDESPATURE’stermofofficeasamemberof the SupervisoryBoardexpires at theendof thenextAnnualGeneralMeeting.In his capacity as a member of the Supervisory Board, VictorDESPATUREindicatedthathedidnotwanthistermofofficetoberenewed.Intheeventofrejectionofthe11thresolution,itwillbeproposedthat you do not reappoint him or replace him, but that youacknowledgetheendofhistermofoffice.

Independenceandgenderparity

It is specified that theSupervisoryBoardconsiders that,amongsttheseproposedmembers,FlorenceNOBLOT,SophieDESORMIÈREandPauleCELLARDareconsideredtobeindependentmembersbytheSupervisoryBoardbasedontheMiddlenextCodecriteria.Subjecttotheapprovalofthesereappointments,theBoardwouldcomprise fourwomen and threemen, in accordancewith parityrules, and five independent members, in accordance withMiddlenextrecommendations.

Expertise,experienceandskills

The information concerning the expertise and experience ofFlorence NOBLOT, Sophie DESORMIÈRE et Paule CELLARD aredetailed in theparagraph “Expertise and experienceofmembersof theSupervisoryBoard”of thereportoncorporategovernancewhichisincludedinthe2020AnnualFinancialReport.

APPROVALOFTHEREMUNERATIONPOLICYFORMEMBERSOFTHESUPERVISORYBOARD(resolution33)

Intheeventofrejectionofthe11thresolution,itwillbeproposedthatyouapprovetheremunerationpolicyforthemembersoftheSupervisory Board as presented in the report on corporategovernance included in the 2020 Annual Financial Report(paragraph“Corporateofficers’remunerationpolicy”).

Your Management Board asks you to approve the aboveresolutionssubmittedtoyourvote,itbeingspecifiedthatthe14th

to28thresolutionswillbeputtothevoteandpostalvotescastinrelationtotheseresolutionswillbecountedonlyintheeventthe11th resolution is approved, and that the29th to33rd resolutionswill beput to the vote andpostal votes cast in relation to theseresolutionswillbecountedonlyintheeventthe11thresolutionisrejected.

TheManagementBoard



APPENDIX: SOMFY SA FINANCIAL RESULTS FOR THE LAST FIVE YEARS

€thousands 2016 2017 2018 2019 2020

1.Financialpositionatthebalancesheetdate

Sharecapitala) 7,400 7,400 7,400 7,400 7,400

Numberofsharesissuedb) 7,400,000 37,000,000 37,000,000 37,000,000 37,000,000

Numberofbondsconvertibleintosharesc) – – – – –

2.Overallresultofcurrentoperations

Netsalesa) 2,919 3,234 3,412 3,705 3,862

Profitbeforetax,amortisation,depreciationb)andprovisioncharges 106,992 86,979 94,252 116,910 97,790

Incometaxc) 1,089 25,516 4,457 2,913 2,345

Profitaftertax,amortisation,depreciationd)andprovisioncharges 119,375 107,111 98,241 114,988 100,960

Distributedprofit*e) 45,140 48,100 51,800 46,250** 68,450

3.Earningspershare

Earningspershareaftertax,butbeforeamortisation,a)depreciationandprovisioncharges 14.61 3.04 2.67 3.24 2.71

Earningspershareaftertax,amortisation,depreciationb)andprovisioncharges 16.13 2.89 2.66 3.11 2.73

Dividenddistributedpersharec) 6.10 1.30 1.40 1.25** 1.85

4.Workforce

Numberofemployeesatendofyeara) 3 4 10 11 11

b)Totalpayrollpaid 724 959 1,146 1,586 1,694

Amountpaidinrelationtoemployeebenefitsc)(SocialSecurity,charities,etc.) 207 326 222 395 371

Thisamountcorresponds to theproposeddividend for the last financialyearendedbefore itsapprovalby theGeneralMeeting (which isheld in*N+1).Consequently,itincludestheamountofthedividendrelatingtotreasurysharesthatwillnotbepaid.ThedividendamountwasreviseddownwardsattheGeneralMeetingof24June2020.**

43

03


NON-FINANCIAL STATEMENT

Presentationofthebusinessmodel44

PresentationoftheGroup’ssustainabledevelopmentstrategy46

Presentationofnon-financialrisks47

Somfy’sresponsestonon-financialrisks49

Methodologynote63

03

03 NON-FINANCIAL STATEMENT


NON-FINANCIAL STATEMENT

Thenon-financialstatementformsanintegralpartofthemanagementreport.Itispresentedseparatelyforeaseofreading.Throughoutthenon-financialstatement,apictogramshowingabulbindicatesthattheinformationexclusivelyconcernsSomfyActivitésSA,theGroup’smainsubsidiary.

PRESENTATION OF THE BUSINESS MODEL

A.PRESENTATIONOFSOMFY—AVISIONFORSUSTAINABLEGROWTH

Somfyhas spent the last50yearsmakingeveryday lifeeasier formillionsofusersaroundtheworldbydevelopingsmarthomeandbuildingmanagementsolutions.TheGroupinnovatestoautomateand connect all types of equipment to open, close and shadewindows, terraces, doors and gates using connectedmotors andcontrol solutions that operate them together using intelligenceandmaketheminteroperablewithotherhouseholdequipment.TheGroup’sgrowthmodelisguidedbyitsvision,“Inspireabetterlivingenvironment,accessibletoall”.Somfy’s development model is based on the conviction thateveryone, around the world, aspires to a safe, healthy, andsustainable livingenvironment for themselvesaswellas for theirloved ones. To meet these essential needs for improving livingenvironments, Somfy creates innovative solutions for homes andcommercialbuildingsinthreeareas:

comfortandwell-beingforallandatallages;–safetyofpeopleandproperty;–preservationoftheenvironment.–

ASUSTAINABLEBUSINESSMODEL,ADAPTEDTOTHELOCALMARKET,WHICHBRINGSTOGETHERTHEENTIREVALUECHAIN

the adoption of new technologies by the user and by theconstruction industry and unleash the growth potential of theconnectedhome.

At the forefront of the digitalisation of buildings, Somfy designsnew functions for new and existing buildings that meet theaspirations of everyone. Providing useful, safe, simple andaccessible solutions is the value creation model that Somfydevelopswiththehelpandfor thebenefitofall itsstakeholders.The attractiveness of the Group’s ranges, their interoperabilitywithotherhouseholddevices,andtheireaseofuse,all influence

Somfy is a local stakeholder,with a presence on five continents,andadapts itsproduct linestothespecific featuresofeachof itsmarkets.Somfyaimstobethepreferredpartnerforopeningandclosing automation in homes and commercial buildings. In thisway,Somfycontributestothedevelopmentofbothitscustomersand its partners, by making the excellence of its products andservicesaconstantpriority.

BASICORGANISATIONALPRINCIPLESOFSOMFY

On 1January 2020, the Group implemented a new organisation,guidedbythreemajorprinciples:

a function-based architecture, around global business lines in–ordertosupporttheGroup’sdevelopment;a customer-centric organisation, with reduced interfaces to–facilitatedecision-makingandoptimiseresourceallocation;an organisational model that facilitates the digitalisation of–products,customerrelationsandoperations.

DESCRIPTIONOFGROUPACTIVITIES

Somfydesigns, assembles anddistributesmotors and automateddevices (remote controls and sensors) as well as intelligentsystems which control their operation. Somfy’s mainmanufacturing activity is the assembly of subunits and partsdesignedbyitbutproducedbysubcontractorpartners.The R&D activity anticipates peoples’ new habits and needs inrelation to homes and buildings, designs the correspondingsolutions, guarantees the performance and compatibility ofproducts from the samebrand and ensures their interoperabilitywithotherbrandsinthefieldofconnectedhomesandbuildings.



Control of its distribution (international supply chain, local salesandmarketingpresence)meansSomfyproductscanbedeliveredworldwide. Customers are manufacturers and installers, whointegrate Somfy solutions into carrier products: blinds, shutters,doorsandgates,orbyreplacingexistingequipmentinbuildings,byleveraging the strength of the Group’s brands. Somfy alsodistributes finished products (a selection of motors and controlpanels, connected objects, digital applications) that are sold byprescribers, networks, retailer installers or resellers, via largespecialistandDIYstores,andonline,eitherdirectlyorindirectly.

Somfyproductsareinstalledinindividualhomes,smallbusinesses,apartmentblocks,officeblocks,hotelsandcollectiveresidences.

B.RESILIENCEOFTHEBUSINESSMODEL—As a result of the lockdowns, the health crisis hasmade peopleaspire to even better living environments, highlighting tocustomers the benefits offered by Somfy solutions, andconsolidating its vision and ambition. The new organisation hasproved its relevance in dealing with the operational challengescaused by the pandemic without calling into questionorganisationalchoicesorthebusinessmodel.

C.BUSINESSMODEL—

CONTRIBUTION TO THE MODEL

HUMAN CAPITAL• 5,710 employees(1)

VISION

AMBITION

KEY ACTIVITIES

Inspire a better living environment, accessible to all.

Be the preferred partner for opening and closing automationin homes and commercial buildings.

Everyone around the world aspires to a safe, healthy, and sustainable living environment for themselves as well as for their loved ones.

To meet these essential needs for improving living environments, Somfy creates innovative solutions for homes and commercial buildings,in three key areas:• comfort and well-being for all and at all ages;• safety of people and property;• preservation of the environment.

• Research & Development• Marketing• Prescription

• Assembly• Distribution• Sales

Four strategic pillars serving our ambition for 2030:

INTELLECTUAL CAPITAL• 2,210 patents• 21 experts (Expertise sector)

FINANCIAL CAPITAL• Stable shareholding = 72.08% • Cash flow = €274.5M

PRODUCTIVE CAPITAL• Somfy present in 58 countries • 8 industrial sites• CAPEX = €49.8M

SOCIETAL CAPITAL• Funds contributed to Les Petites Pierres = €284 thousand• Foundation budget = €851 thousand

NATURAL CAPITAL• Low consumption of natural resources

EMPLOYEES• Employee expenses = €367.3M• Training = 47,525 hours(2)

• Engagement = 7,6(3)

CUSTOMERS & USERS• NPS(4) = 68• Motors manufactured(5) = 192 million • Connected devices(6) = 7,800,947

INVESTORS• Sales = €1,257.1M• COR = €260.7M• ROCE = 29.6%

SUPPLIERS• Volume of local purchases (< 500 km) = 40%

ENVIRONMENT• 57% of Act for Green® products(7)

• Annual power consumption per motor = 10.7 kWh/year

CITIZENS• 223 participations in solidarity days

VALUE CREATED FOR STAKEHOLDERSPROFITABLE GROWTH MODEL

Forward-looking in Smart Living

Rising value

to customers


Inspiring &

Engaging

(1) Excluding temporary staff. (2) Scope of social reporting.(3) “Intrinsic engagement rate” up 0.5 points.(4) Net Promoter Score (customer satisfaction indicator) = % promoters – % detractors. (5) Motors manufactured by the Group since the beginning, excluding Dooya.(6) Number of objects connected by the Somfy cloud.(7) According to the PEP ecopassport® standard.



PRESENTATION OF THE GROUP’S SUSTAINABLE DEVELOPMENT STRATEGY

A.2030AMBITIONOFTHESUSTAINABLEDEVELOPMENT—With the strategic framework Ambition 2030, Somfy isincorporating Corporate Social Responsibility (CSR) ahead of itsstrategy in order to make it the foundation for the Group’ssustainable growth. Somfy’s sustainable development strategy isbasedonthreepillars:Planet,PeopleandProsperity:

Planet: limit then reduce the negative effects of operational–processesontheenvironment;People:ensurethattheGroup’sactivitybenefitsemployeesand–othercommunities;Prosperity: encourage business practices that promote–sustainablegrowthwithlittlenegativeimpactontheworld.

The key issues of this policy have been ratified by the StrategyCommittee.The Planet pillar involves rolling out the low carbon strategy,maximising user customers’ CO2 avoided emissions thanks toSomfyproductsandintegratingthecirculareconomyapproach.ThePeoplepillarinvolvesimplementingthe“Inspiring&Engaging”pillarwhichisaimedatbothemployeesandapplicants,andmorespecificallytheinclusionanddiversitycomponent.EmphasisisalsoplacedontheGroup’scontributioninrelationtoitsstakeholders.The Prosperity pillar involves rolling out, alongside financialperformance indicators, clear reporting and non-financialindicatorstoguidethestrategyandmeasureprogress.Respectforcustomersisalsoakeyissue,achievedthroughcontinuedfocusoncompliancewithproductstandardsandGDPR.

EnvironmentReduce Somfy’s carbon

footprint

BusinessEncourage business

prac�ces that promote sustainable

growth with li�le adverse impact on the world

SocialContribute posi�vely to the development and well-being of employees and society as a whole

PLANET

PROSPERITY

PEOPLE

B.SUSTAINABLEDEVELOPMENTGOVERNANCE—The Group’s sustainable development policy is led by theSustainable Development Department, which is attached to theCEO and Chairman of the Management Board, and includesenvironmental performance and societal commitment, aswell asthe teams fromtheSomfyFoundationandtheendowment fund,Les Petites Pierres. The Sustainable Development Director chairsthe Sustainable Development Operating Committee made up ofrepresentatives for each function. He reports on his activities totheExecutiveCommitteetwiceayear.AmemberoftheStrategyCommittee, he also oversees the coordinationof this policywiththe leaders of the Group’s four strategic pillars. This policy issubjecttospecificmonitoringbytheSupervisoryBoard.

ThevariouspoliciesarecommunicatedtotheGroup’sheadofficeand its subsidiaries via coordinators or the local manager. Inaddition, the Human Resources Department implements theemployee-related component of this policy as part of the“Inspiring&Engaging”pillar,inclosecollaborationwiththeteamsfromtheSustainableDevelopmentDepartment.

C.SOMFY’SCONTRIBUTIONTOSDGS—

Somfywishestobeanengagedgroupthatcontributesataneconomic,environmental,socialandsocietallevel.Bysigning the Global Compact, Somfy has undertaken to

helpachievetheUnitedNations’SustainableDevelopmentGoals(SDGs).TheSDGsprovidea shared framework tohelpmake theworld a better place. Somfy contributes to them via the threepillars: Planet, People, Prosperity. For more details on SDGs:www.un.org/sustainabledevelopment/

Planet People Prosperity

D.PROOFOFCOMMITMENT—ExternalassessmentshavevalidatedtheprogressmadewithintheGroupintermsofsustainabledevelopment.

Somfyfeatures inthetop15industrialbusinesses inthe2020GaïaRatingdedicatedtoESGperformance.Thenon-financialratingofGaïaRatingassessescompaniesfor investors on their level of transparency and

performance according to Environmental, Social andGovernance(ESG)criteria.Somfy achieved a score of 83/100 for 2020, a significantimprovement of eight points in relation to 2019. In the salescategory, Somfy was ranked 12thout of the 81 companiesassessed.

Somfy was also ranked in the top 25% of businessesassessed by EcoVadis, with a score eight points higherthan in 2019, earning it silvermedal status. The overall

EcoVadis score reflects the quality of the company’s CSRmanagementsysteminthefollowingfields:environmental,social,societal,ethicalandresponsiblepurchasing.



PRESENTATION OF NON-FINANCIAL RISKS

A.METHODOLOGY—The Group’s main CSR risks and challenges set out below havebeen identified and assessed through the overall risk mappingprocessandtheuseofthematerialitymatrixdevelopedin2019.Adedicatedworkinggroupmetseveraltimesin2020toworkonashared vision of risks and CSR challenges. This working group ismade up of the Director of Sustainable Development, tworepresentatives from the Environmental Performance team, oneperson in chargeof SupplyChain in thewider sense,onepersonfrom Human Resources, and the Director of Risks, Ethics andCompliance.

I.MAPPINGOFRISKS

Board management report) of this Annual Financial Report. Apictogram highlights the risks in relation to which a CSRcomponenthasbeenidentified.

ThemajorrisksforSomfyorrisksthataresignificantasaresultofthe Group’s activity are presented in chapter2 (Management

Nevertheless,theCSRrisksdetailedbelowarenotincludedpersein themajor risks in the Risk factors section of chapter2, as theGroup has decided to present itsmain CSR risks according to anassessment of the gross risks, whilst the Group’s overall riskmapping takes into account control measures that have alreadybeenimplemented(netriskmeasurementbasedapproach).

II.MATERIALITYMATRIX

InadditiontothereviewoftheGroup’soverallrisks(chapter2),amaterialitymatrix was finalised in 2019 to compare the Group’sinternal CSR challengeswith the challenges identified by Somfy’sstakeholders. These challenges have been grouped into threemajor categories, which make up the three pillars of theSustainableDevelopmentPolicy:Planet,People,Prosperity.

B.PRESENTATIONTABLEOFCHALLENGESANDRISKS—

Petals Challenges Risks KPI SDGs Pages

Planet

Environmentalimpactofoperations

Globalwarming–Depletionofnatural–resourcesanddamagetobiodiversityPollutionoftheenvironment–bythesites

Waterconsumption–Volumeofhazardousand–non-hazardouswasteEnergyconsumptionofthe–sites

50-52

Environmentalimpactofproducts

Globalwarming–Depletionofnatural–resources(circulareconomy)

Averageannualpowerconsumptionpermotorsold

53-54

ImpactoftheenvironmentonSomfyactivities

Financialrisksrelatedto–climatechange

NA 54

People

Attractingnewtalents,developingskills&employeeengagement

Inadequacyofresourcesin–termsoftalentsandskillsRiskofexodusoftalentsand–fallinengagementlevels

Percentageofemployees–whoreceivedtrainingduringtheyearEngagementrateofthe–SomfyscopesurveyPercentageofemployees–whowerepromotedorrelocated

55

Diversityandinclusion Missingtheopportunityto–growasaresultofourdifferencesDiscrimination–

Changeinthebreakdownof–men/womenPercentageoffemale–managers

55-56

Healthandsafetyatwork

Impactonthehealthand–physicalandpsychologicalwell-beingofemployees

Frequencyrateofaccidents–atworkresultinginabsenceSeverityrate–

57

Localimpactofthesitesandimagewithlocalstakeholders

HowSomfysitesare–perceivedbytheirlocalecosystem

NA 58



Petals Challenges Risks KPI SDGs Pages

Prosperity

Businessethicsandfairpractices

Riskofunethicalbehaviour– Numberofethicsalerts–Percentageofpeoplethat–havecompletedtheanti-corruptione-learningmoduleNumberofpeopletrainedin–corruptionrisk

58-60

Privacyandpersonaldata

Non-compliancewith–protectionofprivacyandpersonaldataDatabreach–

PercentageofemployeeswhohavecompletedGDPRtraining

60-61

ResponsiblepurchasingandSupplyChaintransparency

Socialandenvironmental–impactsofthesupplychainViolationofhumanrights–

Percentageofpurchases–madelocallyRateofREACH/ROHS–complianceRateofConflictminerals–compliance

61-62

Regulatorysafetyandcomplianceofproducts

Regulatorydevelopments–limitingSomfy’sabilitytomarketitsproducts

NA 62

Productinnovationservingusercustomers

Changesinconsumption–habitsandcustomerexpectationsConsumersatisfaction–

NetPromoterScore 62



SOMFY’S RESPONSES TO NON-FINANCIAL RISKS

Somfy responds to these risks ina structuredandorganisedwaybasedon the threepillars that correspond to the three“petals”of itsSustainableDevelopmentStrategy.

A.PLANET—I.ENVIRONMENTALPERFORMANCEGOVERNANCE

TheimplementationofSomfy’senvironmentalperformanceisbasedonfourpillarsthathelptoreducetheenvironmental impactoftheGroup’sactivities.Theyinclude:

Greenproducts:reducingtheenvironmentalimpactoftheGroup’sproductsbyapplyingtheprinciplesofeco-design;–Greenoperations:reducingtheenvironmentalimpactoftheGroup’soperations;–Greenteams:implementing,throughanetworkofemployees,environmentallyresponsiblepracticesintheirplacesofwork;–Greenbenefits:solutionsdevelopedbySomfytoimproveusercustomers’energyefficiency.–

Green opera�onsGreen products

Green benefitsGreen teams

=REDUCING

OUR CARBON FOOTPRINT

Environmentally responsible suppliersTransporta�on of productsEmployee travel & commu�ngEnergy performance of the sites

Environmentallyresponsible prac�ces

and behaviours

Eco-designof products

Theroleof theEnvironmentalPerformanceDepartment is todefineand implement thesestrategieswithin theGroup. It reports to theSustainable Development Department and to the Sustainable Development Operating Committee. Roadmaps are prepared for each ofthesefourelementsincollaborationwiththerelevantfunctionswithintheGroup.Thepriorityforthisoverallpolicyofenvironmentalresponsibilityistocombatglobalwarmingbyreducinggreenhousegas(GHG)emissions.ACarbonAssessment®wascarriedoutin2020usingdatafrom2019,acrossscopes1,2and3fortheentireGroup.Itfoundthat93%ofGHGemissionswererelatedtothemanufactureanduseofSomfyproducts(indirectscope3emissions)and7%totheoperationsoftheGroup’ssites(scope1,2and3emissions).



Below is the breakdown, bymain sources of emission, onwhichtheimplementedactionplansarebased:

Direct purchasesProduct useTransporta�onMobilityOtherEnergyIndirect purchases

2%

1% 1% 1% 2%

73%

20%

Inaddition,theemissionsoftheSomfyActivitésSA’ssitesaccountfor14%ofthetotalemissionsofthesites.

Asecondpriorityistheintegrationofthecirculareconomy:through eco-design – which aims to make the products more–energy efficient, through the use of raw materials – bypromotingtheuseofrecycledmaterialsandbyimprovingtheirsustainability. Theseaspectsmakeup the criteria for awardingeco-designcertificationtotheGroup’sproducts–ActforGreen;inthefactories,throughinitiativesaimedatreducingrejectsand–atcollectingandrecyclingwaste;in Europe, end-of-life products are collected and processed–under the WEEE (Waste Electrical and Electronic Equipment)Directive. These collection and processing initiatives areorganisedbyenvironmentalorganisationswithwhichSomfyhascontractsindifferentcountriesoftheEuropeanUnion.

Ingeneral,Somfycontributestotheimplementationofthecirculareconomy through its involvement in professional organisationssuchastheFIEEC(1),IGNES(2)andtheTechnicalCommittee111(3).

Somfy Activités SA’s environmental policy and governance arederived from the Group’s policy. The impacts and risks areidenticaltotheGroup’s.

II.ENVIRONMENTALIMPACTOFOPERATIONS

1.Descriptionoftherisk

The operations at theGroup’s industrial sites involve assemblingmetal and plastic parts to create finished products. These assembledproductsuseprocessessuchasembedding, screwingandclipping.Theseoperationsdonotusewateroreffluents,orproducts likely tocausedischargesintotheair,soilorcollectionnetwork.Similarly,theseassemblyoperationsareunlikelytogeneratenoiseinthevicinityorusewater.Thevolumesofwaterreportedarethereforeexclusivelyrelatedtothedailynon-industrialconsumptionofthesites.Thisexplainstherelativelylowvolumesusedandretreated.Asaresult,theimpactsofSomfy’sindustrialoperationsidentifiedareasfollows:

globalwarming;–depletionofnaturalresourcesandtheimpactonbiodiversity;–environmentalpollutionbythesites(water,air,soil,waste,noise).–

Onthislastpoint,giventhenatureoftheGroup’sindustrialassemblyactivitiesandtheassociatedrisks,theissueismarginalanddoesnotrequireanyspecificmeasures.

FIEEC:FrenchFederationofElectric,ElectronicandCommunicationIndustries.(1)IGNES:FrenchAssociationofDigitalPowerandSecurityEngineeringIndustries.(2)INTERNATIONALELECTROTECHNICALCOMMISSIONTechnicalCommittee111:Environmentalstandardforelectricalandelectronicproductsandsystems.(3)



2.Policies 3.Initiatives

GlobalwarmingEvaluation through measurement, notably via a CarbonAssessment®, helps find appropriate solutions for the mainchallenges,whichare:transportationofproducts;–energyusedonthesitesandthevehiclefleet;–indirectpurchases;–mobility.–

Optimum balance is sought between feasibility and reducingGHGemissions.

During2020,roadmapsweredevelopedaspartofathree-yearstrategicplan.Themaininitiativesare:products: the development of technology ensuring reduced–consumptioninstandbymode;sites: signing of green electricity supply contracts,–replacement of incandescent bulbs with LED, gradualelectrificationofthevehiclefleet.

ThefollowinginitiativesrelatetoSomfyActivitésSA:mobility:–

organisationofa“MobilityChallenge”day,●usebyemployeesofcarsharingapp,Klaxit,●56employees declared 28,556 km as part of the Cycling●MileageAllowance,bicycle event created by the Écomobilité Savoie Mont●Blancagency,20employees use the electric vehicle charging points●provided,useofalorryfuelledbygastotransportproductsbetween●thedifferentHaute-Savoiesites;

improvementoftheenergyperformanceofthebuildings:–betterinsulation,●systemformanagingenergyconsumption.●

DepletionofnaturalresourcesThe Group is determined to limit waste and rejects in itsindustrialassemblyactivitiesandtoreducetheuseofcardboardforpackagingfinishedproducts.

continued implementation of quality policies in factories,–aimedat reducing thenumberof assemblydefects and thusrelated rejects. The defects are analysed, grouped by type,and type 8D methodologies are structured via a system ofShort Interval Meetings (SIM). This operating standard isappliedinallfactories;at the end of the assembly lines, products identified as–non-compliantarerepairedorrejected.Thesubunitsoftheserejectedproductsaresortedaccordingtotypeofmaterialandsenttowastecollectionandprocessingoperators;

amachine for cutting customised boxeswas installed at the–internationallogisticssite(SomfyActivitésSA)withtheaimofachieving a 7,000m2 reduction in the use of cardboard peryear.

ImpactonbiodiversitySomfy is keen to protect biodiversity and has several sites inregionswhereprotectingbiodiversityisamajorissue: SomfyActivitésSAisamemberoftheClubd’Entreprisespour–

laMontagneetsonDéveloppementDurable(CEM2D);five beehives were installed in 2020 at various Somfy–ActivitésSAsites;the SOPEM factory complies with strict requirements–regardingtheprotectionofitslocalenvironment.Compliancewith environmental standards was also a precondition forsettingupanyplant.

Somfy ActivitésSA, located in the heart of the French Alps,–close to Mont Blanc, wants to act to protect the mountainecosystemandisinvolvedinlocalinitiatives;the SOPEM factory in Poland is located on the edge of two–protectedsitesbelongingtotheNatura2000network:

PuszczaNiepolomickaPLB120002,●TorfowiskoWielkiePLH120080.●

TheecoambassadorsworkingaspartoftheGreenteamspillarconveyaspiritofenvironmentalresponsibilitywithinSomfyandarekeyplayersintheroll-outofthesepolicies.



4.ResultsandKPIs

Foralltheindicatorspresented,the2019baselineisthatpublished.In2020,theDomisSAsiteenteredtheindustrialreportingscope.

WaterconsumptionoftheGroup’sindustrialsites

Environmentalreportingscope SomfyActivitésSA

31/12/19 31/12/20 ▲ 31/12/19 31/12/20 ▲

Waterconsumptioninm3 46,685 39,691 -15% 12,788 8,670 -32%

Ratiom3/employee 11.0 9.1 -17% 7.3 5.0 -32%

Water consumption isexclusively related to “non-industrial”use (toilets, showers, fountains), the reductionof17% is thereforedirectlyattributabletothelowerusagebyonsitestaffasaresultofthemeasurestakeninrelationtoCovid-19.

WastefromtheGroup’sindustrialsites


31/12/19 31/12/20 ▲ 31/12/19 31/12/20 ▲

Non-hazardouswasteinkg/motor 0.351 0.280 -20% 1.342 0.934 -30%

Hazardouswasteinkg/motor 0.002 0.003 44% 0.009 0.025 188%

TOTALWASTEINKG/MOTOR 0.353 0.283 -20% 1.351 0.959 -29%

Recyclingrateofhazardousandnon-hazardouswaste 91% 89% -2.6pts 90% 84% -6.3pts

Theoverallreductioninthetonnageofwastereflectstheeffectivenessofthemeasuresintroducedtoraiseenvironmentalawarenessandtheeffectivenessofqualitypoliciesinrelationtoreducingrejects.Therecyclingratewaslowerin2020asaresultofnew,previouslyunrecorded,categoriesofwasteenteringthescope(hydrocarbonsludgeandsoiledfilters).

Greenhousegas,combattingglobalwarmingandenergyefficiency


31/12/19 31/12/20 ▲ 31/12/19 31/12/20 ▲

Gas(kWh/m2) 50.5 50.1 -1% 88.3 90.3 2%

Power(kWh/m2) 56.3 54.5 -3% 71.9 62.8 -13%

Mineralfioul(kWh/m2) 0.6 0.9 69% – 0.6 –

ENERGYCONSUMPTIONPERM2(KWH/M2) 107.3 105.5 -2% 160.2 153.7 -4%

TotalGHGemissionsinCO2EQ(Tonnes) 6,752 6,823 1% 1,576 1,592 1%

Thegreenhousegasemissionsoftheindustrialsitesaremonitoredandcalculatedusingactualenergyusagereadings.TheGroupnowpresentsitsenergyconsumptionintheformofratiosrelatedtosurfaceareainm2,anindicatorthatcanbecontrolledandcomparedbetweenindustrialsites.Consumptionofheatingoil,unrelatedtooperations,isaddedtoreflecttotalenergyconsumption.Energyconsumptionperm2wasdownanaverageof2%.Despitelowpresenceatthesites,thebuildingtemperaturewasmaintainedwhilefulfillingtheventilationdemandsimposedbythehealthandsafetyrulesrelatedtoCovid-19.

Lastly,theGroupwasnotthesubjectofanyappealorproceedingsrelatingtoanypotentialviolationofnationalenvironmentalregulationsin the countries inwhich it operates.However, thesepositive results cannotbedeemed tobe anend in themselves and the companyintendstocontinuetoimplementproactivepoliciestoensurethatthenumberoflegalactionsremainsatzero.



III.ENVIRONMENTALIMPACTOFPRODUCTS


TheCarbonAssessment®conductedin2020using2019dataconfirmedthefindingsoftheassessmentcompletedon2011data:93%oftheGroup’sGHGemissionsareconnectedwith themanufactureanduseof theproducts,ofwhich78%wasrelatedtopowerconsumptionwheninuseand22%totheuseoftherawmaterialsrequiredfortheirmanufacture.Themainriskisthereforeglobalwarming,throughtheincreaseinGHGemissions.


GlobalwarmingApolicyofeco-designhasbeenimplementedwiththereductionofgreenhousegasesemissionsasapriority.Theseproducts are awardedanAct forGreen labelwhen theymeetstringenteco-designrequirements.Act for Green is based on a framework taken into account byResearch & Development teams. It incorporates requirementsthatarebrokendownaccordingtoseveralsubjectareas:controlling greenhouse gas emissions through moderate–poweruseandthechoiceofappropriaterawmaterials;seeking to use recycled and recyclable rawmaterials in the–compositionofproducts;materials selected for their low impact on health and the–environment;productdurability;–astatementoftheenvironmentalimpactsinlinewiththePEP–ecopassport® programme in which Somfy participates. Thisprogramme, developed by the electricity industry, defines astandardisedmethod formaking environmental declarationsin accordance with international regulations (ISO14025 &ISO14040s). The information contained in this PEPecopassport® has been independently verified by BureauVeritasCODDE.

Somfy Activités SA’s R&D teams are piloting these eco-designinitiativesfortheproductsfortheentireGroup:in 2020,Act forGreen certificationof products continued in–accordance with a roadmap developed with the functionsconcerned;in order to integrate new technologies and the expanded–productrange,thetechnicalcertificationframeworkhasbeenimproved;anassessmentof the technologies for reducingconsumption–hasbeencompletedandincorporatedintoathree-yearplan.

4.ResultsandKPIs

Continuedeco-designeffortshaveledtoanincreaseintheproportionofproductsintheSomfyportfoliowithActforGreencertification:in2020,sixnewrangesofproductswerecertifiedActforGreen;–theproportionofproductssoldundertheSomfybrandthatbeartheActforGreenlabelrosefrom54%in2019to57%in2020.–

0

10%

20%

30%

40%

50%

60%

70%

2015 2016 2017 2018 2019 2020

NB: the rate published in 2019, which stood at 60.77%, covered a scope restricted to Home & Building. On a like-for-like basis, therecalculated2020rateis63.1%.



Certificationofproducts iscarriedout internallybasedoncriteriavalidatedinaLifeCycleAnalysis(LCA)verifiedbyanexternalthirdparty. It specificallymeets criteria regarding the consumption ofproductsonstandby,thetypeofelectroniccomponentsusedandpackaging.Soastotracktheimpactofitsproductsonglobalwarming,Somfymonitorstheaverageannualpowerconsumptionpermotorsold,for all brands (apart from Dooya). This indicator simultaneouslyincludes energy consumption in use and on standby in order totake into account all the measures aimed at reducingenvironmentalimpact.Consumptiononstandbyand inuseresult fromtheLCAsverifiedbyanexternalthirdparty.Theaveragelifetimeforallthemotorsbeing set at 15years, it is here reported to one year for bettermanagementoftheindicator.

31/12/19 31/12/20 ▲

Annualpowerconsumptionpermotor(kWh)

10.8 10.7 -1.3%

Forinformation,theaverageCO2emissionsinstandbymodeover15years per electronic motor sold is 36.3kg CO2, a reduction of3.5%inrelationto2019.Thedata used in the calculationwasprovidedby theGroup andhasa lowlevelofuncertainty.However,theemissionfactorusedisbasedonaverageEuropeandata,ultimatelyresulting ina levelofuncertaintyclassedasmedium.

IV.IMPACTOFTHEENVIRONMENTONSOMFYACTIVITIES

This involves analysing and reducing the financial risks related totheimpactofclimatechange.Somfy’s activity is partly focused on exterior (motorisation ofshuttersandpatioawnings)andinterior(motorisationofcurtainsand blinds) solar protection.Weather conditions have an impactonboth the volumeofproducts sold andon their installation, inparticular over the first half-year, during which sales ofmotorisationsforblindsareconcentrated.Aspartofitsindustrialactivities,theGroupisexposedtoacertainnumber of risks attributable to climate conditions (storms,earthquakes, floods, etc.) and therefore, more generally, toclimate change. The Group has introduced a risk assessment forthisandhastheinsuranceitneedstoprotectitfromanyfinancialconsequences.The fight against climate change has been taken into account inthe design of its products through its Act forGreen programme.TheGroupisalsoworkingonoptimisingtheuseofrawmaterials,energyefficiencyandability tobe recycled to reduce the carbonfootprintofitsproducts.

B.PEOPLE—Somfy has always put people at the heart of its corporate visionsincetheGroupfirmlybelievesthatitisthroughpeoplethatitwillmakethedifferenceinallthatitdoes.Somfyseekstooffereveryemployeeaplan thatenables themtodevelop their internalandexternal employability. The company is a place of life in whichevery person can grow, both professionally and personally.Conditions in theworkplace andunderwhich theyperform theirrole, andmaintaining the health and safety of everyone are keyparameters.

The project Ambition 2030 sets out the Group’s social strategy,throughthe“Inspiring&Engaging”pillar,inthefollowingway:The Group wants to create the right conditions to ensure thatemployeeshaveapositiveandinspiringprofessionalexperienceinordertoenablethemtogrow.Theprimarymissionoftheleadersandmanagers is to help their teams achieve success. TheymustsharetheGroup’sstrategyandgivemeaningtoalltheactivitiesinwhich their teamsareengaged.This is toenableeverypersontodevelop autonomy and to take decisions at their level:empowerment drives the performance, agility and strongcommitmentofSomfyemployees.Excellence is developed across all global functions and thecoordination of professional communities is another vehicle fordevelopingteams.Diversity and inclusion are at the heart of the people-focusedproject,andSomfy isactivelyworking tobetterknowthe talentsacross the entire Group, in order to entrust them with roleswithout necessarily requiring them to move to the countryconcerned.SmartWorkinghasacceleratedthistrend.

On this basis, the implementation of Somfy’s social strategy hastakentheformoffourelements,whichare intendedtoberolledoutacrosstheentireGroup:

the “One Somfy, One Team”mindset is Somfy’s mantra. The–resultstargetsareachievedthankstothestrengththatbeingagroupconfers;inclusivediversityhelps toachieveabetterperformance from–teams.TheGroupisevolvingfromaFrenchtoaninternationalculture.Diversity isakey factor in success,but inclusion is thetruechallenge;talents and new skills: “Somfy is a special place in which to–grow”. The Group must succeed in developing its employeesandattractingexternaltalents.Itmustworktoachievetherightbalancebetweeninternalpromotionsandexternalrecruitment.Itswishistoboostcareersandgiveeachpersonastakeinthedevelopment;a vision from leadership that creates the conditions for its–teamstosucceed.Thissuccessdependsonthedefinitionoftheframework, as well as on accountability, demandingexpectationsanddevelopment.

Thepoliciesandactionsrelatedtothesefourelementsare,forthemostpart,alreadyinplaceatSomfyActivitésSA,thelargestentity.Theirgradualroll-outatGrouplevelisongoing.

The Group’s overall workforce at 31December 2020 (includingpermanent, fixed-termandwork/studyemployees,andexcludinginterns and temporary staff) was 5,710people compared with5,711in2019,withbreakdownbyageasfollows:

178 143

561 606

1,591 1,505

1,954 2,001

1,427 1,455

20192020

< 25 years old 25-35 years old

35-45 years old

45-55 years old

> 55 years old



I.ATTRACTINGNEWTALENTS,DEVELOPINGSKILLS&EMPLOYEEENGAGEMENT


Attracting talent and developing the skills of its employees arecentral to Somfy’s challenges. The Group’s performance isdependent on its ability to have the right resources, in the rightplace,attherighttime.Inadditiontotheriskofnothavingthehumanresourcesrequiredto achieve its ambitions, not focusing on the development ofemployees’ skills could run the risk of an exodus of talents.Supporting employees to improve their employability is a keyfactor in increasing their feeling of job security and, as a result,retainingthemwithinthecompany.Moreover,thesechallengesofattracting talentsanddeveloping skills incorporate thebusiness’scurrentandfutureneedsinrelationtoitsstrategy.

2.Policies

An agreement on Jobs and Skills Planning was concluded for aperiod of five years from 1January 2020 for the scope of SomfyActivitésSA. This agreement facilitates the improvement andcoordination of the resources implemented in terms of training,career management, geographic and professional mobility, andskills development. It particularly provides for an initiative toanticipate changing jobs (mapping and policy), the process ofannual reviews, the introduction of People Reviews, etc. SomfydecidedtorolloutthesemeasuresatGrouplevel,thusbeyondtheframework set out by the agreement. In addition, a policy oninternal mobility is under development and will be rolled outwithintheGroupoverthecourseof2021.

3.Initiatives

Several types of measures have been introduced to ensure theGroupattractstalentsanddevelopsskills:

conductingPeopleReviews:anticipatingorganisationalchanges,–definingdevelopmentplans, identifyingpoolsoftalentinorderto offer them attractive career paths, constructing successionplans for key positions within the organisation, analysingorganisational and job developments (78 People Reviews ineachorganisationand15cross-DepartmentalPeopleReviews);introduction of a careers watchdog: mapping of existing–professions and associated skills, forward planning regardingexpected developments within these professions (16professionalnetworks,94occupationalfieldswithframeworkofassociated skills, 187 generic positions with associateddescriptions-documentsavailabletoallGroupemployees);creationofskillsdevelopmentplanstosupporttheexcellenceof–thefunctionsandaspecifictraining/awarenessraisingpolicytosupportremoteworkingwithintheGroupandtheintroductionofthenewHRcycle;introduction of mobility committees to facilitate the–identification of potential candidates and the proposed careerpaths (monthly sessions at Executive Committee meetings inFranceandinternationally);

roll-outatGroup levelofaplatformtoprovideanoverviewof–vacantpositions(Smartrecruiterssolution);introduction of individual performance reviews and–developmentreviewsforallGroupemployees(trainingofGroupemployeesinrelationtothisnewapproachin2020androll-outscheduledfor2021);employee indicators via the biannual Somfyscope engagement–surveyandself-assessmentofqualityofworkinglifeconductedannually during the performance review (with systematicinterview with HR in the event of an employee reportingproblems).

4.ResultsandKPIs

The resultsof the2020Somfyscopeengagement surveyare verysatisfactory.Theintrinsicengagementratewas7.6,anincreaseof0.5pointsinrelationto2018.Thesehealthyresultsweredrivenbytwomajorthemes:prideinbelongingtotheGroupandconfidenceinitsfuture.Thesurveyisopentoallemployees.Theresponseratewas78%in2020.Theengagementraterepresentstheaveragescoreoutof10forthe10keyquestionsaskedinthesurvey.

Theindicatorsrelatedtotrainingareasfollows:

Collectionpanelforsocialdata 2019 2020

%ofemployeeswhoreceivedtrainingduringtheyear 69.65% 49.90%

%ofemployeeswhowerepromotedorrelocated* 8.25% 7.85%

SomfyActivitésSA 2019 2020

%ofemployeeswhoreceivedtrainingduringtheyear 76.97% 68.78%

%ofemployeeswhowerepromotedorrelocated* 17.06% 18.30%

* Number of promotions in the year divided by the total number ofemployeesonthepayrollat31December.

Theamountoftrainingin2020wasimpactedbythelockdownandtheinabilitytocompletecertainface-to-facetrainingasaresultofthe health conditions. E-learning modules have been developed(annualperformancereview,effectiveness inremoteworking,forexample) and remote training was provided without howeveroffsettingtheoveralldecline.

II.DIVERSITYANDINCLUSION


DiversityandinclusionareattheheartofSomfy’speople-focusedproject.Somfynotonlyconsidersdiversity tobeavalue in itself,enablingittodischargeitssocialresponsibilityinanauthenticway,butalsotobealeverenablingtheGrouptoenhanceexperiencesandperspectives,to innovateandtochange.Notbeingproactiveon this issuewould riskmissing the opportunity to develop as aresultofthedifference.



2.Policies

The overall aim in relation to this issue is detailed in theintroductiontothePeoplechapter.TheGroupconsidersthisareato be a key factor in its success. In France, Somfy is focusing itsefforts on gender equality and disability. Somfy ActivitésSA hassigned an agreement with Agefip, which sets out a three-yearinvestmentplan,allowingfortherecruitmentofmoreemployeeswithdisabilitiesandensuringitcomplieswithregulations.Somfy does not want to differentiate between its talents. Thisprinciplewas acknowledged in 2018with the signature,with thetradeunions,ofaCompanyAgreementpromotinggenderequalityin theworkplace.Thisagreement covers five topics: recruitment,remuneration, career development, the relationship betweenwork and private life, and health and safety at work. Theagreementwassignedforaninitialperiodofthreeyears.ThistypeofapproachwillbeextendedacrosstheGroupfrom2021.

3.Initiatives

Several key actions have been completed in relation to genderequalityintheworkplace,including:

during recruitment, both internal and external, the Group’s–practice is to include at least one woman in the shortlist ofcandidates. Somfy particularly wants to promote therecruitment of women in the Engineers and Managerial Staffcategory. SomfyActivitésSAhas set itself the following target:toensure theproportionofwomen in this category is at least30% by the end of 2021. At the end of 2019, this target wasachieved: women made up 30% of managerial staff andengineers(up2%inrelationto2018);second objective: Somfy wants to increase the appeal of–so-called “technical” professions amongst students and topromoteanon-genderedimageinrelationtotheseroleswhilewomenaccount forunder30%of these roles. To achieve this,the company is going to take part in several school anduniversity forums to promote these professions to femalestudents. At Somfy, non-discrimination between men andwomen in the award of individual increases is guaranteed.Specific resources have been mobilised to support theproportion of women in the Engineers and Managerial Staffcategory, and each year funding of €25,000 is committed toqualificationandcertificationtrainingforourfemaleemployees;seeking the balance between professional development and–familyresponsibilitiesisattheheartofourconcerns.Measureshave been taken to allocate family-related charges moreequitably: the employer’s share of pension contributionsmaintainedintheeventofparentalleave;fullsalaryguaranteedin the event of statutory paternity leave; length of servicemaintainedbytheemployeeduringparentalleave(against50%according to the French Employment Code currently); easieraccess to informationon the statutory leave put into place bythe company to support parents; solidarity based savingsaccountschemeforemployeesrequiredtosupportaseverelyillspouse or parent. This scheme enables all employees to giveannualleavedaystotheemployeeassumingresponsibilityforamemberoftheirfamilywithanillnessordisabilityorwhoisthevictimofaseriousaccident;

Somfy is seeking to roll out equal access to training and–professional opportunities. Childcare constraints shouldnot bean obstacle, notably for lone parents. As such, uponpresentationof supportingdocumentation, overnight childcarecosts are covered in the event of an exceptional workassignment (including training). Lastly, in order to respect thework/life balance and family responsibilities, flexible workingtimeisfacilitated.Forexample,employeesinateamonrotatingshifts can move to a team on fixed shifts until theirchild/childrenreach/reachestheageofthree;whilehealthandsafetyintheworkplaceareaprioritysharedby–all Somfy teams, specific attention is paid to the health offemaleemployees.Measuresarespecificallyfinancedtocombatmusculoskeletal disorders (MSD). A budget of €60,000 isdedicatedtothe“ProMSD”projecttoimprovetheergonomicsofproductionworkstations.Othermeasureshavebeentakentooffer relief in relation to the stresses experienced duringpregnancy:everypregnantemployeecanbenefit fromanareaformorerestintheeventoftiredness.

Inrelationtodisability:Somfy conducts campaigns to raise employee awareness and–workswith an agency specialised in the recruitmentof peoplewithdisabilities;initiatives in 2020 included coverage of the topic of Disability–duringtheSustainableDevelopmentweek(atGroup level)andanotherweekwasentirelydevotedtotheissueduringEuropeanDisabilityEmploymentWeek;

SomfyActivitésSA’srecruitmentteamsparticipatedforthefirst–timeinthespecialistrecruitmentforumHelloHandicap!;several practical measures have been introduced to facilitate–continuedemployment: four-daysofpaid leaveofabsenceperyeareverythreeyears,flexibleworkinghours,flexibilityintermsofrole,etc.;more broadly, Somfy is committed to theDisability ecosystem–through its use of subcontracting services from companieswithintheprotectedworkersector.

4.ResultsandKPIs

TheengagementrateofwomenintheSomfyscopesurveystoodat7.5, a significant increase of 0.6points in relation to 2019. Thispositiveresultwasdriven inparticularbythefollowingelements:respect for the employee by their manager, safety in theworkplaceandconfidenceintheGroup’sfuture.

%ofwomenintotalworkforce

2019 2020

Collectionpanelforsocialdata 45.63% 45.94%

SomfyActivitésSA 39.98% 40.76%

%ofwomeninmanagement

2019 2020

Group Notcalculated 24.26%

SomfyActivitésSA Notcalculated 31.54%



III.HEALTHANDSAFETYATWORK


TheHealth&SafetyriskisinherentinanyprofessionalactivityandSomfyplaces theprotection and safety, andphysical andmentalhealth of all its employees at the very forefront of its concerns.Dependingonthetypeofactivitycarriedout, thiscoverstheriskof accident at work, risk of occupational disease – primarilymusculoskeletaldisorders(MSD)–aswellaspsychosocialrisks.Inrelationtoindustrialactivities,themajorriskisrelatedtomanualhandlingandtotheergonomicsoftheworkstation.

2.Policies

The Group’s Health & Safety policy is primarily based on theassessment andpreventionof the risks towhich employeesmaybeexposedinordertoreducesuchexposureandimproveworkingconditions. This primarily involves a collective approach whichcomprises, for thedifferent typesofactivitiespursuedwithin thecompany,identifyingthetypeandimportanceoftheexistingrisksanddefiningtherelatedpreventivemeasures.Thisleadstoannualimprovement programmes in association with the employeerepresentatives. It also involves an individual approach whichrequires each person, at their level, to be aware of the risks towhichtheyareexposedandadapttheirbehaviourasaresult.ThetrainingandcommunicationinitiativesimplementedinrelationtoHealth&Safetyareintendedtomaintainanddevelopthislevelofawareness.

3.Initiatives

Majorinitiativesimplementedin2020:introduction of a new Health & Safety organisation at Group–level,strengtheningoftheteam(twopeople);start of construction of aGroupHealth& Safetymanagement–system,draftingoftheGroupHealth&Safetypolicyforlaunchduringthefirstquarterof2021;

analysisofchemicalrisksatClusesandBonneville:inventoryof–chemicals used (greases, lubricants, adhesives, etc.), collectionandanalysisofSafetyDataSheets(SDS),identificationofatriskproducts(substitutionofproducts,protectivemeasures,etc..);introduction of MSD prevention programmes. At Group level,–finalisationofaguidetodesigningworkstationsergonomically;

At Somfy ActivitésSA: modification of supply and removal ofparts and modernisation of the QT40 production lineequipment, various improvements on the NL40 line (raising,reimplantation,adjustmentofpositionofcontrols),definitionofrules for rotationbetweenworkstationsaimedat reducing therepetitivenessfactorinrelationtothesite’sfourmainranges;preventionofpsychosocialrisks:trainingofmanagers, listening–andpersonalisedsupportservice,e-learning;management of the Covid-19 pandemic from a health–perspective (see dedicated insert): this crisis has shone aspotlight on the Health & Safety teams and their vitalcontributiontoprotectingeveryone’sHealth&Safety.

4.ManagementoftheCovid-19crisisandimpacts

We were taken by surprise by the magnitude of the Covid-19pandemic,withwhichwehavebeenfacedsincethebeginningof2020, and the speedwithwhich it spread throughout the entireworld.GiventhattheGrouphasoperationsinChina,theHealth&Safetyteambecameinvolvedintheissueveryearlyonwith“crisismanagement”styleoperation.The response to this unprecedented situation primarily involvedthedefinitionandimplementationofappropriatehealthprotocols,specifically settingout all themeasuresput intoplace toprotectagainstthespreadofthevirus:physicaldistancing,handhygiene,enhancedcleaningofworkstations,thewearingofmasks,limitingtravelandjourneys,remoteworking,etc.A standardprotocolwas thusdefinedatGroup level, then rolledoutacrosseachofthesites,takingintoaccountthelocalsituationand the governmental measures specific to each country. Theseprotocolswere regularly reviewed to reflect the changing healthsituation and government measures (lockdown, curfew, travelrestrictions,etc.).Regular meetings with the Group’s various sites and entitieshelped to coordinate the implementation of protocols, to sharefeedback including the difficulties encountered, such as, forexample, the procurement of masks at the beginning of thepandemic,andtoprovideasmuchaspossibleaunitedresponse.Therapidmobilisationoftheentirecompany,thecommitmentofmanagement teamsand thecollectiveeffortsmadeallhelped toprotect the health and safety of everyone, with a very limitednumber of suspected cases of infection in theworkplace and noseriouscasesrecordedtodate.On the issueof health and safety, the results of the Somfyscopesurveyreflecttheimportanceofthemeasuresundertaken.Withascoreof8.6, theelementrelatingtotaking intoaccountsafety intheworkplacerose0.4pointsinrelationto2018.

5.ResultsandKPIs

The2020resultsshowasignificantincreaseinthefrequencyrateofaccidentsresultinginanabsenceofmorethanoneday(up14%)and a severity rate that was stable overall in terms of thecollectionpanelforsocialdata.Thisriseresultedfromanincrease,in relation to 2019, in the number of accidents in distributionsubsidiaries combinedwith a significant reduction in thenumberofhoursworked.Nevertheless,thefrequencyrateimprovedattheindustrial sites (falling from4.90 to3.93) asdid the severity rate(from0.17 to 0.13) butwithout howevermanaging to offset thedeclineatsubsidiarylevel.

Collectionpanelforsocialdata 2019 2020

Frequencyrate 4.29 4.91

Severityrate 0.15 0.15

OfwhichSomfyActivitésSA 2019 2020

Frequencyrate 5.79 6.99

Severityrate 0.33 0.33



IV.LOCALIMPACTOFTHESITESANDIMAGEWITHLOCALSTAKEHOLDERS


Somfy is a committed business player,mindful of the challengesforitsbusinessdevelopmentofsocial,societalandenvironmentalchanges.Thesechallengesincludetheimpactofitsactivityontheecosystemsandterritoriesinwhichitsmainsitesarelocated,andtheir contribution to the performance of its activities, andmoregenerally the importance of this commitment in relation to thecompany’simageandreputation.Not taking into account this interdependency may result in theperformance of the sites concerned being reduced and thecompany’s image and reputation, either locally or more widely,beingdamagedintheeyesofitsstakeholders.

2.Policies

Thesocietalresponsibilitypolicyisbasedontwoelements:civic responsibility aimed at improving living environments for–all and in particular, combatting poor housing, through itsCorporate Foundation and the Les Petites Pierres endowmentfund;local involvement through financial support or participation in–initiativespromotingtheeconomic,societalandenvironmentalattractivenessoftheterritories.

3.Initiatives

The initiatives pursued by Somfy aremany and varied. AtGrouplevel, Somfy finances the Somfy Corporate Foundation whichembodiesthissocietalresponsibilityintheeyesofitsemployees.

Somfy ActivitésSA is a higher education partner (Foundation–and Business Club of the Université Savoie Mont-Blanc,innovation chair at Edhecbusiness school). Somfy collaborateswithbusinessdevelopmentplayersintheterritoriesinwhichitsmainsitesarelocated(CIMEScompetitivenesscenter,Thésameassociation);

Somfy is a member of the initiative “France an opportunity,–businesses are committed” to promote inclusion. Somfy is asponsor of various local initiatives in Cluses and Bonneville: in2020Somfyfinancedthe“AnOrchestraatSchool”inClusesandsupportedtheorganisationMBRace;

Somfy is a sponsor of the French Skiing Federation andof the–French biathlon team. Somfy supports champion biathletes inFrance and Germany, including Paralympic gold medallistBenjaminDaviet.

V.COMMITMENTTOCIVICRESPONSIBILITYANDSPONSORSHIP

Toprovidesolutionsto issuesrelatedtopoorhousing,theSomfyFoundation is committed on a day-to-day basis to organisationsbothinFranceandinternationally,viatwodriversforaction:

financial sponsorship to support and accompany non-profit–projects(annualallocationof€370,000);human sponsorship thanks to the community initiatives of–companyemployees.

TheFoundationinitiatesorsupportslocalinitiatives,rootedinthelocal community in France and internationally. Initiatives inkeepingwith Somfy’s industry, theHome, andwhich involve theGroup’semployees.Inspiredbytheeffectivenessoftheinclusivepoliciescommittedtothedigitalera,theSomfyFoundationwantedtobringtogetherallstakeholders – citizens, companies and organisations – around acommunitycrowdfundingplatformtoenablethemtoacttogethertohelpvulnerablepeopleaccessdecenthousing(platformcreatedin2013).Since 2012, the Somfy Foundation has been developingpeople-based sponsorship thanks to a valuable and ongoingdialogue with company employees and organisations, enablingemployees,duringtheirworkinghours,tomeetorganisationsthatworktocombatpoorhousing,inordertoofferassistance.Employees have the opportunity to sign up voluntarily for threedays a year, during their working hours, for both operationalassignments, such as painting, decorating, odd jobs, etc. and formorestrategicassignmentsthankstoskills-basedsponsorship.Theircommitmenthelpstodevelopgenuinepartnerships,workingclosely with the needs of the organisations, in order to providesupport to vulnerable people in the home and to serve thecommongood.Inanapproachbasedonopennessandrespectfortheterritoriesin which the Group operates, and because the problem of poorhousingknowsnoborders, theSomfyFoundationhascommittedtosupportingcharityprojectsaimedatcombattingpoorhousinginseveralcountriesinwhichthecompanyoperates.Employeeinvolvementismeasuredbyformatusingthenumberofdaysspentandnumberofparticipatingemployees.Asaresultofthealteredhealthconditionsin2020,thesefigureswerelower:

39daysorganisedin2020comparedwith87in2019;–223employees involved in 2020 in comparison with 528 in–2019.

C.PROSPERITY—I.BUSINESSETHICSANDFAIRPRACTICES


Through the Ambition 2030strategic framework and its sustainable development policy, Somfy is determined to strengthen itsstakeholders’confidenceinitsabilitytoconductitsbusinessethically.ThatiswhytheGrouphasmadeethicsacross-companyfocusofthispolicy.Risksrelatedtonon-ethicalbehaviourandcorruptionwithinthecompany,andtheirrepercussionsintermsofimageandreputationaswellasthefinancialimpacts,aretakenallthemoreseriouslybySomfygiventhattheGroupaimstobethepreferredpartnerforopeningandclosingautomationinhomesandcommercialbuildings.SomfyemployeesanditspartnersmustcomplywiththelawsandregulationsinforcewithinthejurisdictionsinwhichSomfypursuesitsactivities,aswellaswithSomfy’svaluesandpoliciesintermsofethicalprinciples.Topromotethiscultureateveryleveloftheorganisation,Somfyreliesonseveralpoliciesthemainprinciplesofwhicharementionedbelow.




EthicsSince2015,SomfyhashadaCodeofEthicswhich isapointofreference for employees in relation to individual and collectivebehaviour,andaframeworkforeverydayactions,enablingthemtoembodytheGroup’svalues.This Code is a common and unifying document, which guidesevery employee in their decision-making; it is also a tool topromotedialoguebetweenemployeessothatethicsisanopenmatterunderstoodbyall.It is systematically provided to employee on joining theGroupand is available on the Group’s website and intranet in 23languages.

The Audit Committee and the Management Board providestrongsupport to theEthicsCommitteeandoversee theethicsfunction.The Ethics Committee helps to ensure there is a collectiveapproachtoethicsandthattheprinciplesdescribedareapplied.It ismadeupof fourmembers appointedby theManagementBoard.It relies on a network of Ethics officers to oversee localcommunication and close coordination, ensuring the solution’seffectiveness.Managersareresponsiblefortheroll-outandapplicationoftheCode of Ethics within their scope, including in relation to newarrivals.Every employee must understand and apply the principles setout in the Group’s Code of Ethics. Employees are alsoencouragedtoreportanyconcernsrelatingtoethicalprinciplesorbehaviour to theirmanager, their local Ethicsofficer, or theEthicsCommittee.A whistleblowing mechanism has been in place since 2015allowingtheconfidentialandsecurereportingofanybehaviourthatcontravenestheCodeofEthics,sothatitcanbeconsideredand handled in compliance with the applicable legal andregulatoryprovisions.Includedintheanti-corruptioncomplianceprogramme, this whistleblowingmechanism also allows Somfyto meet the requirements of law n°2016-1691 of 9December2016 on transparency, the fight against corruption and themodernisation of the economy, known as the “Sapin2” law. Aspecificprocedurehasbeenformallysetout in23languagestopresentthissystemandtheconditionsofitsuse.Lastly,SomfyisalsoamemberoftheBusinessEthicsGroup,anorganisationthathassetitselfthetaskofpromotingethicsandcompliance in the management and governance of Frenchcompanies.

FightagainstcorruptionIn addition to the Group’s Ethics Code and following theenactment of the law on transparency, the fight againstcorruption and themodernisation of the economy, Somfy hasset out its anti-corruption policy, available on the Group’swebsite,andimplementedananti-corruptionprogramme.

The Group has formally set out mapping dedicated to theanalysis of corruption related risks in each of its geographicregions,inaccordancewithitsactivities.The Group decided to adopt the Middlenext Anti-CorruptionCodeofConduct,designedtoprovideguidanceforbehaviourinbusiness.SomfysupplementedtheCodewithseveralappendicesinorderto provide practical advice, examples and links to otherprocedures.E-learningwasrolledouttoalltheGroup’semployees(excludingmanualworkersandequity-accountedentities)in22languages.Face-to-face trainingwas introduced for employees consideredtobethemostexposed.Theroll-outoflocaltrainingcontinuedin 2020, although the timing was disrupted by the healthsituation.Thewhistleblowingmechanism introduced in 2015 to escalatenon-ethical behaviours (asmentioned above)was extended tomeettherequirementsofthe“Sapin2”law.Accountingcontrolswere implemented to detect potential fraudulent acts. Adigitalised solution to ensure atypical transactions are keptundercontrolonanongoingbasisiscurrentlybeingpurchased.Proceduresarecurrentlybeingrolledouttoassessthirdpartieswith whom the Group already works, and prior to any newrelationship. A screening solution was purchased in 2019 andimplementedin2020.

CombattingmoneylaunderingThe Group’s Treasury Charter expressly states that paymentsand receipts made in cash are not permitted, except inexceptional cases in complete compliancewith applicable localregulationsand/ortheGroup’srules.

Cashflowsformanintegralpartofthetestsoftheinternalauditprogramme and are verified during each assignment within asubsidiary.TheGroup is involved in the fightagainstmoney launderingbyworking with reliable and strong banking partners, who useprocedurestoverifyfinancialflowsandtheirorigins.




FightagainsttaxevasionSomfyundertakestoobservethespiritandtheletterofthelawinallcountriesinwhichitdoesbusiness.It wants a frank and transparent relationship with all taxauthorities, seeks to clarify all uncertainties and resolve alldisputes induecourse. Itconsidersthat itpays its fairshareoftaxesinthosecountriesinwhichitoperates.

TheGroupundertakestopursuethefollowingactionsinitsdrivefortaxtransparencyandtocombattaxevasion:participate in compulsory reporting such as the–Country-by-CountryreportingforFrance;monitor that intragroup transactions comply with arm’s–lengthprinciplesandOECDactionsonbaseerosionandprofitshifting(BEPS).

Anti-competitionThe Group’s compliance with rules governing competition is apriority. This compliance undertaking is reaffirmed in theCompetition Law Charter currently going through the approvalprocess, in order to strengthen theGroup’s culture and in thiswayhelptocreatelong-termvalue.

TheGrouphasundertakenamajorcampaigntoraiseawarenessamongst the employees concernedof compliance issues in thefieldofcompetitionlawbygivingthemdedicatedtraining.TheGroupispursuingitspolicybyworkingtoimplementamoreextensivecomplianceprogrammeinordertoprovideemployeeswiththetoolsrequiredtobemoreproactive.

IntellectualpropertyrightsSomfyrespectstheintellectualpropertyrightsofthirdparties,inthesamewayitexpectsitsrightstoberespected.

The process of developing a new product covers analyses offreedomtousepatentsateachstageofthisdevelopment.Aqualifiedpatentteam(threeEuropeanlegalrepresentatives)isdedicated to this analysis and issues documents showing theassociated risks. Launches of products are therefore based ondesignsspecifictoSomfythatarerightsfree.The vastmajority of product names are covered by registeredtrademarks. The process of creating these names includes apreliminarysearchofavailabilityconductedbyaspecialistteam(twointellectualpropertylawyers).

4.ResultsandKPIs

EthicsThe indicator used to monitor the performance of the ethics mechanism is the number of ethics alerts reported to the EthicsCommittee,whichwassevenin2020(againsttwelvein2018andninein2019).Thislowernumberledusincreaseourcommunicationeffortsin2021inrelationtotheexistenceofthereportingmechanism.Outofthesevenreportsreceived,sixwereadmissibleandfivewereclosedat31December2020.

Anti-corruptionSeveralindicatorsaremonitored,notablythoserelatingtoanti-corruptiontraining:

in2020,261additionalemployeescompletedthee-learninganti-corruptioncoursewithinSomfyActivitésSA,mainlymadeupof–newjoinersandpeoplewhowereabsentduringthepreviousinitiativesin2019;all the Group’s entities which had not received a roll-out in 2019 did so in 2020, representing an additional 1,346people who–completedthissamemoduleintheirnativelanguage,meaningallemployeesconcernedintheworkforceatthedatesofthelocalcampaigns;in2020,162additionalpeople,consideredtobemoreexposedtotheriskofcorruptionreceivedface-to-facetraining,representing–atotalof826peoplesincethestartoftheroll-outoftheanti-corruptionprogramme,plus195DirectorswhoaremembersofthevariousManagementCommittees;asof31December2020,neitherSomfynoranyofitssubsidiarieshadbeenfoundguiltyoforwereunderinvestigationinrelationto–corruption.

II.PRIVACYANDPERSONALDATA


The protection of user and employee data is one of the keyelements of the Group’s Sustainable Development policy. Since2018, Somfy has been engaged in ensuring the Group is incompliancewiththeGeneralDataProtectionRegulation(GDPR).

2.Policies

The Group has rolled out a policy to protect internal dataworldwideinordertoensureanequivalentlevelofprotectionforallemployeeswherevertheyarelocated.

Somfy’s data protection policy was the subject of co-creationworkshopswith some Somfy France users in 2019 and 2020 andresultedinaprototypeofaninteractivecontrolandpersonaldataprotection interface which should be rolled out across theConsumersitesfrom2021.

An Information System Security policy was formally set out androlled out in order to structure governance and define eachperson’s role in the security of Somfy’s IT system. This policy isoverseenonacross-companybasisbytheGroupChiefInformationSecurityOfficer(CISO),andcoversallinformationassets,includingIT,industrialandproducts.



3.Initiatives

Following an audit carried out in 2018, the Group has a DataProtection Officer (DPO) responsible for monitoring dataprotectionandtheroll-outoftheroadmap.Keyprojectscoveredthemanagementoftherightsof individualsinrelationtoGDPR,themanagementandnotificationofpersonaldata breaches, the development of data flow mapping, thecompletion of processing registers within European Union (EU)entities, data governance within the Group, and trainingemployeesandraisingtheirawareness.To support and optimise this compliance upgrade, a network ofGDPR officers – Privacy Champions – was set up and an overallcommittee,theGDPRSteeringCommittee,meetseachmonth.Somfy’s European employees (excluding production) completedmandatorye-learning training (“GDPRAssignment”). This trainingisalsoobligatoryforallnewarrivalsatSomfyandisaccessibletoall.TheprocedureformanagingGDPRincidentsintroducedintheASKsolution,totraceandmanageGDPRincidentsassoonastheyarereported, is currently undergoing being revised so that it can beintegratedintotheoverallITincidentmanagementsystem.The DPO team, attached to the Legal Department and currentlymadeupoftheDPOandaPrivacyprojectcoordinator,isinvolvedin monitoring and providing day-to-day support to the businessfunctions to ensure projects developed within the Group arecompliant:newcookiebannerfollowingrecommendationsbytheEuropeansupervisoryauthoritiesin2020,integrationofprivacybydesign into impacted projects, inventories and review of dataprotectioncontractsfollowingtheinvalidationoftheprivacyshield(SchremsII judgement of the European Court of Justice),completion of impact analyses, occasional support of non-EU BUondataprotectionissuessuchastherevisionoftheprivacypolicyintheUnitedStatesfollowingtheentryintoforceoftheCCPA.Lastly, specific measures, such as organisational or technicalaudits,aswellaspenetrationtests,are implementedregularlybyindependent and accredited third parties on different scopes oftheinformationsystem(infrastructure,applications,hardware)toidentify potential vulnerabilities within them and to set out therelatedremedialactions.

4.ResultsandKPIs

E-learningawarenesstrainingregardingtheprotectionofpersonaldatawaslaunchedinearly2019,withtheaimofgraduallyrollingitoutacrosstheentiretargetpopulation(employeesoftheGroup’sEuropeanentities(excludingmanualworkersandtemporarystaff)uptotheendof2020.In 2020, 395 out of 485 targeted employees successfullycompleted the“GDPRAssignment” training (100%of the trainingcourse with a minimum of 80% correct answers in the quiz),representingatrainingrateof81%.Between2019and2020, intotal3,210employeescompletedthetraining,withasuccessrateof84.50%.Lastly, two other e-learning modules related to informationsecuritywererolledoutin2020:

Multi-Factor Authentication: 2,442people completed the–module, representing almost 49%of the people registered (allpeopleintheGroupwithacomputer);

Security Essentials for Executives: 46people completed the–module, representing 82% of the people registered (scope:ExecutiveCommitteeandL-1).

In2021,followingthearrivalofanewCISO,severalmeasureswillbeimplementedinordertofurtherimproveawarenessaroundtheissue of IT security, with in particular the roll-out of acomprehensive360°programme,UserAwarenessandTraining,incollaboration with the Communications and Human ResourcesDepartments.

III.RESPONSIBLEPURCHASINGANDSUPPLYCHAINTRANSPARENCY


Theperformanceof theextendedSupplyChain isoneofSomfy’sstrengths and forms an integral part of the Group’s valueproposition.Inthisregard,itssmoothoperationandtransparencyareessential.Thedownstreampart, towards thecustomer, ismainlyorganisedby the company itself in order to best serve the multi-channelapproach. The upstreampart is heavily subcontracted given thatthe Group’s industrial activity exclusively involves assemblyoperations. The components of its products are all purchased.Relationships with suppliers and subcontracting are thereforeimportant for Somfy. It is its practice to ensure the entire valuechain is involved in its commitment to corporate socialresponsibility. In fact, specific attention is paid by upstreampartners to theconsiderationofSomfy’s requirementsand is thesubjectofexplicitcommitmentsandregularperformancereviews.

2.Policies

This policy is reflected in the new contractual frameworkwith aviewtodeployingtheGroup’sCSRcommitments intheupstreamsupplychainandassoonasnewpartnersareadded:humanrights,employment, the environment, fair practices and combatingcorruption,conflictmineralsandhazardoussubstances.

3.Initiatives

In order to fulfil its commitments, Somfy oversees a supplierrelatedriskmanagementapproachthroughmappingthatclassifiesrisksfrom1-lowriskto4-highrisk.To support this approach, a Responsible Purchasing coordinationfunction has been created to structure and consolidate theinitiatives.

Furthermore, in France, Somfy is a member of the organisationThésame,whereitjointlyfinancesaprogrammecalledPEAKwhichdevelops collaborative and innovative approaches in relation tothe procurement function within a sector. Somfy has jointlyfinancedthreedissertationsonthesubject.

4.ResultsandKPIs

The indicators monitored by Somfy regarding relationships withsubcontractingandsuppliersare:

the percentage of purchases made locally, meaning within–500kmoftheassemblysite.In2020,40%ofpurchasesfulfilledthis criterion, a stable figure in relation to 2019 within anuncertain health and economic environment, limitingopportunities for the development of new partners. Thisindicator is calculated for seven production and distribution



sites thatbuy components. TheBFT (Italy) andLianDa (China)sitesarenotincluded;thepercentageof supplierscoveredbya supplier riskanalysis.–In2019,thetopfivewereassessed,andin2020thetop40weretargetedwith49assessmentscarriedout,and in2021 the top80 should be targeted. For every component developed by asupplier, the Group requests awritten undertaking relating totheEuropeanDirectivesREACHandROHS.The2020campaigncoveredallsupplierswithsalesofmorethan€10thousandandincludes a response rate of compliance statements of 53%,downinrelationto2019;inaccordancewiththeregulationsadoptedbytheUSSecurities–andExchangeCommission in2012, theGroup implemented itsdutyofdiligenceinrespectofitssupplychain,inordertoensurethatthesuppliesusedinitsproductsdonotcontainanyconflictminerals. Out of the 15 suppliers concerned by “conflictminerals”in2020,allmettheundertakingrequirements.

IV.REGULATORYSAFETYANDCOMPLIANCEOFPRODUCTS


Somfy products need electric energy in order to function.Non-compliance with electrical safety standards and regulationscouldexposeuserstosignificantrisks.Toensuretheiroperationalsafety and control their environmental impact, these productsmust also meet regulations concerning electromagnetic andenvironmentalcompatibility.

2.Policies

Somfyisscrupulousinitscompliancewiththesestandardsrelatingto electric safety and electromagnetic and environmentalcompatibilitystandardsinallthecountriesinwhichitoperates.Inordertopromotebestpracticesintermsofproductsafetyandtoanticipatethe integrationoftherequirements intheproducts,Somfy is actively involved in the proceedings defining thesestandards and regulations. This work is done via European andinternational standardisation bodies or through professionalorganisations.A policy of CE marking, and in particular of French standardlabelling in France andUL labelling in theUnited States, confirmcompliancewiththesestandardsandregulations.

3.Initiatives

The implementation of this policy was strengthened in 2020 byvariouspracticalmeasures:

Somfy is actively involved in five standards committees at IEC–(International Electrotechnical Committee) and CENELEC(EuropeanCommitteeforElectrotechnicalStandardization)levelwithmorethan100daysofmeetingsperyear.Regulationsarealsomonitored throughprofessionalbodies suchas IGNESandFIEEC;an in-house laboratory at Somfy is accreditedby the company–LaboratoireCentraldesIndustriesÉlectriquesinFrance;governancewasstrengthenedbythe introductionofaProduct–Compliance Committee chaired by amember of the ExecutiveCommittee. This Committee oversees regulatory complianceandtherelatedorganisationwithintheGroup.

V.PRODUCTINNOVATIONSERVINGUSERCUSTOMERS


We are going through a period of radical change in consumerbehaviour and habits. Climate changewill further accelerate thistransformation.Customers are moving towards meaningful and sustainableconsumption, by limiting environmental impacts and choosing toshoplocally.

2.Policies

Somfy has simultaneously implemented a structure to attract,listentoandinvolvecustomersbyconsultingcommunitiesontheone hand, and through a culture developing innovation andflexibilitytoaddressandrespondrapidlytochangingneedsontheother.

3.Initiatives

Withtheaimofplacingcustomersattheheartofitsconcerns,ofbetter understanding their expectations and sources ofdissatisfaction,Somfyhascreatedforumsandsurveys.This is thepurposeofthecommunityplatform,“MySomfyLab”,whichbringsSomfytogetherwithInternetuserssothattheycanjointlycreatetheproductsandservicesofthehomeoftomorrow.In this way, in 2020, 6,012 contributions from 4,000 consumerswere recorded from “My Somfy Lab”members. 43 surveyswereconducted,acrossallcountriesandtargetscombined.Dialoguewith customers has continued despite the health crisis.For example, Somfy spokewith consumers to better understandusageandexpectationsrelatedtoanairqualitysensorduringthephasesaheadofitsdevelopment.TheGrouphasalsosharedwithFrench, German and US consumers the ways in which theynormally use their interior blinds in order to identify, alongwiththem,theidealinteriorblind,aswellasitsprice.Alltheseinsightshelp the teams innovate and improve their understanding ofconsumersandtheirneeds.

4.ResultsandKPIs

Customersatisfactionismeasuredinseveralcomplimentaryways:thankstosurveysconductedeverytwoyears.Theobjectiveisto–assess base trends and to shape the areas for improvement.Therearetwotypesofresults:

the extent to which Somfy is recommended by customers:●theNetPromoterScore(NPS).Thiswas68in2018,meaningtwopointslowerthanin2016.Thissatisfactoryresultwillbeupdated for the year 2020 in March2021. A range ofcustomers are asked the question “How likely are you torecommend Somfy to a friend or colleague?”. According totheiranswer,customersareclassifiedasdetractors,passivesor promoters. TheNet Promoter Score, the result ofwhichranges from -100 to +100, is equal to the percentage ofpromoterslessthepercentageofdetractors,overall assessment of customer satisfactionwith an equally●satisfactoryresultof85%;

Salesforce, the CRM solution used by the distribution–subsidiaries, includes an instant measurement of customersatisfaction (CSAT).Thismeasurement is takeneverywhere thesolution is installed. Operational KPIs and targets are defined.The results are analysed by customer segment and localisedaction plans mean customer satisfaction can be improved ineachcountry.



METHODOLOGY NOTE

The non-financial statement was drafted using the reporting protocol introduced for the 2020 CSR reporting in accordance withArticleL. 22-10-36oftheCommercialCode.

A.REPORTINGPROTOCOL—TheGroups’ CSR reportingprotocol is the reference guide for allthoseinvolvedinCSRreportingwithintheGroup.ItisdrawnupinFrench and English. Its purpose is to define all the Group’s CSRindicatorsalongwiththeirmethodofcalculation,andtodescribethe procedures for their collection and for reporting in order topromotetheconsistencyandcomparabilityofdata.Thisdocumentis distributed to and applied at all levels of data reporting. ThereportingprotocolisupdatedannuallytotakeintoaccountGroupdevelopments.TheCSR reportingprotocolalso servesasa reference frameworkfor the external verification of data, in accordance withArticleL. 22-10-36 of the Commercial Code. It is available onrequestfromHeadOffice.

B.SELECTIONOFINDICATORS—TheGroup’s indicatorsweredefinedby theCSRofficers foreacharea in linewith theGroup’sCSRstrategy, thenon-financial risksidentified and the resulting social, environmental, societal andethical objectives. They address the main challenges (risks andopportunities) inherent in the Group’s activity and illustrate,through clear communication, the Group’s non-financialperformance and the policies it has introduced to address thesechallenges,whileatthesametimesupportingtheCSRapproachineachoftheprogressdriversidentifiedbytheGroup.CertainmandatoryareasarenotincludedinthisstatementastheyarenotsignificantinrelationtotheGroup’sactivities:

foodwaste;–food poverty and responsible, equitable and sustainable food–choices;animalwelfare.–

C.COLLECTION,INTERNALCONTROLANDCONSOLIDATION—The collection of CSR indicators is ensured by the CSR officerswithin their respective fields of expertise. They rely on theirnetwork of local experts who provide the data. The CSR officersarealsoresponsibleformonitoringtheconsistencyandplausibilityof the data prior to its consolidation in order to generate theGroup indicators included in theCSR sectionof themanagementreport.

D.REPORTINGPERIOD—The data collected covers the period from 1 January to31December2020.

Dependingontheindicators,itcanrelateto:an annual consolidation of the data from 1January 2020 to–31December2020;thedatameasuredat31December2020.–

Wherehistorical information is available,data is reportedon thelasttwofinancialyears.Unlessotherwisespecified,when2020and2019dataarereferredto,itisonacomparablescopebasis.

E.REPORTINGSCOPE—For reasons of organisation and access to information, not allGroup companies have been included. The Group wants to useperimeters that are more relevant depending on the topicscovered.Assuch,certaincompaniesareexcludedfromthesocialscope due to the existence of very low workforces in certainorganisations (distribution subsidiaries spread out over vastgeographic areas such as South America), or the lack of HumanResourcesinformationsystemsdesignedforcollectingdataeasily.However, the Group integrates all significant companies that itfullyowns.Newlyacquiredcompaniesareintegratedintothereportingscopefollowingaprobationaryperiodnecessary for the introductionofreporting.Companieswhichweresoldduringthefinancialyeararenotincludedwithinthereportingscope.

Specificsofthescopefor2020reporting:Theanalysisscopeforsocialdatainthe2020reportnowincludesDomisSA. It related to 42 Group companies and a workforce at31December 2020 of 5,329people, representing 93.33% of theGroup’stotalworkforce.These companies are spread across five continents, and30countries (South Africa, Germany, Australia, Austria, Belgium,Brazil, China, South Korea, Egypt, Spain, United States, France,Greece, India, Israel, Italy, Japan,Morocco,Norway,Netherlands,Poland, Republic of Cyprus, Czech Republic, United Kingdom,Russia,Singapore,Sweden,Switzerland,TunisiaandTurkey).The environmental reporting scope for the 2020 financial year iscomprised of 100% of the industrial sites (eight sites, nowincludingDomisSA).

F.METHODOLOGYLIMITATIONS—ThemethodologiesusedforthereportingofcertainCSRindicatorsmaypresentlimitationsdueto:

particularities of local legislation in the various countries in–whichtheGroupislocated;lackofavailabilityofinformationoncertainscopes;–useofestimatesintheabsenceofassessmenttools;–practicalitiesofcollectingandprocessingdata.–



65

04


REPORT ON CORPORATEGOVERNANCE

Corporategovernance66

Informationonremuneration74

Informationonelementsliabletohaveanimpactintheeventofapublicoffering

95

ObservationsoftheSupervisoryBoardontheManagementBoard’smanagementreportandthefinancialstatementsforthefinancialyear

95

04

04 REPORT ON CORPORATE GOVERNANCE


REPORT ON CORPORATEGOVERNANCE

PursuanttoArticleL.22-10-20oftheCommercialCode,weremindyouofSomfySA’scorporategovernanceprinciplesandherebypresentinformationinrelationtocorporateofficers’remunerationandelementsliabletohaveanimpactintheeventofapublicoffering.WealsoinformyouofourobservationsontheManagementBoard’smanagementreportandonthefinancialstatementsfortheyearjustended.Thecompany’sFinancialandLegalDepartmentsare themajorcontributors to thepreparationof this reportunder theauthorityof theSupervisoryBoard.ThisreportwasforwardedtotheStatutoryAuditors,submittedtotheAuditCommitteeof9March2021forreview,andtotheSupervisoryBoard on 10March 2021 for approval. It was amended by the Board on 20 April 2021 to take into account the plan to change thegovernancemodeltoadoptthelegalformofaLimitedCompanywithaBoardofDirectors.

CORPORATE GOVERNANCE

CORPORATEGOVERNANCECODE—SomfySAreferstotheMiddlenextCorporateGovernanceCodeforlisted companies revised on 14September 2016 (hereafter theMiddlenextCode),availableatwww.middlenext.com.

Atitsmeetingof19November2020,theBoardreviewedtheareasrequiringattentionincompliancewithrecommendationR19oftheMiddlenextCode.

Among the recommendationsof theMiddlenextCode, theBoardnoted that the company had rejected the application of thefollowingrecommendation:

Recommendationrejected

Explanation

AuditCommitteetobechairedbyanindependentmember(R6)

TheChairmanoftheAuditCommitteeisamemberoftheshareholdingfamily,whosetrainingandprofessionalexperiencequalifyhimtoholdthisposition.Furthermore,theothertwomembersoftheAuditCommitteeareindependentmembers.

COMPOSITIONOFCORPORATEGOVERNANCEBODIES—Somfy is a French limited company (société anonyme), whoseorganisationisbasedonthe“ManagementBoardandSupervisoryBoard” formula, which entrusts company management to theformerundersupervisionofthelatter.

COMPOSITIONOFTHEMANAGEMENTBOARD

Management Board members are appointed by the SupervisoryBoardinaccordancewithlegalprovisions.Management Board members are appointed for a term of fouryearswhichwillexpireattheendoftheGeneralMeetingcalledtoapprovethefinancialstatementsfortheyearthenendedandheldduringtheyearinwhichtheirtermofofficeexpires.

At31December2020, theManagementBoardwas composedasfollows:

Name Position Age Datereappointed

Datetermends

JeanGuillaumeDespature

Chairman 43 17May2017 2021AGM

PierreRibeiro

MemberandChiefFinancialOfficer

54 17May2017 2021AGM



COMPOSITIONOFTHESUPERVISORYBOARD

Atthedateofpreparationofthisdocument,theSomfySASupervisoryBoardconsistedofninemembers,includingamemberrepresentingemployees:

Name Position Age Nationality Dateappointed Datetermends AuditCommittee

RemunerationCommittee

MichelRollierChairman

Independentmember

76 French

MemberoftheSupervisoryBoard:

15May2012Chairmanofthe

SupervisoryBoard:16May2013

2022AGM – Chairman

VictorDespature Vice-Chairman 71 French 15May2007 2021AGM Chairman Member

PauleCellard Independentmember 65 French 16May2013 2021AGM Member –

AnthonyStahl Member 47 French 28June2002 2023AGM – –

MarieBavarel-Despature Member 40 French-Swiss 17May2017 2024AGM – –

SophieDesormière Independentmember 54 French 17May2017 2021AGM – –

FlorenceNoblot Independentmember 57 French 17May2017 2021AGM – –

BertrandParmentier Independentmember 65 French 24June2020 2024AGM Member _

ArthurWatin-Augouard

Memberrepresentingemployees

40 French 17September2020 16September2024 – –

Relevant expertise and experience are detailed in the section“Expertise and experience of the members of the SupervisoryBoard”.

Duringthefinancialyear,thecompositionoftheBoardchangedasfollows: BertrandParmentierwas appointed as amemberof theSupervisoryBoardforatermoffouryearsbytheAnnualGeneralMeeting of 24June 2020, to expire at the end of the GeneralMeetingtobeheldin2024toapprovethefinancialstatementsforthe year thenended, andArthurWatin-Augouardwas appointedon17September2020by theGroupCommitteeasamemberoftheSupervisoryBoard representingemployees fora termof fouryears, to expire on 16September 2024, as noted by theSupervisoryBoardmeetingof19November2020.ItisalsospecifiedthatthetermofofficeofVictorDespatureasamemberoftheSupervisoryBoardwasrenewedforatermofoneyearbytheAnnualGeneralMeetingof24June2020,toexpireattheendoftheGeneralMeetingtobeheldin2021toapprovethefinancialstatementsforthefinancialyearthenended,andthattheterm of office of Marie Bavarel-Despature as a member of theSupervisory Board was renewed for a term of four years by theAnnualGeneralMeetingof24June2020, toexpireat theendoftheGeneralMeeting tobeheld in 2024 to approve the financialstatementsforthefinancialyearthenended.

EqualrepresentationofmenandwomenontheBoard

To date, excluding the member representing employees on theBoard(whomustnotbetakenintoaccountwhenassessinggenderparity – Commercial Code, ArticleL.225-79-2II paragraph2 andL.225-79 paragraph3), the Board comprises eight members,including four women, meaning there is no gender imbalancewithin the Board. As such, the company complies with the legalprovisionsregardinggenderequalitynamely,giventhesizeoftheBoard, a maximum difference of two between the number ofmembersofeachgender.

Self-assessmentoftheSupervisoryBoard

Duringthefinancialyear2020,anupdateontheassessmentoftheoperation and the work of the Board and its Audit andRemuneration Committees was carried out at the SupervisoryBoard meeting of 9September 2020. It highlighted overallsatisfaction and some areas for improvement, which were alsodiscussedon9July2020betweentheChairmanandmembersofthe Supervisory Board with no members of the ManagementBoardpresent.Itwasagreedtotakethesefindingsintoaccountinthefuture.



CONDITIONSOFPREPARATIONANDORGANISATIONOFTHESUPERVISORYBOARD’SWORK—TheSupervisoryBoardperformsitssupervisoryroleinaccordancewiththeconditionsprescribedbylaw.A Chairman and a Vice-Chairman are elected from among itsmembers,andtheymaycallmeetingsoftheBoardbyanymeans,includingverbally.

INDEPENDENCEOFTHEMEMBERSOFTHESUPERVISORYBOARD

Agroupof family shareholdersholds themajority stake inSomfySA.AsprovidedbytheMiddlenextframework,theBoardassessestheindependenceof itsmemberseveryyearandatthetimeoftheirappointment, based on the independence criteria recommendedbytheMiddlenextCode,namely:

arenotandhavenotbeenanemployeeorexecutivecorporate–officerofSomfySAoranyotherGroupcompanyduringthelastfiveyears;

havenothad,during thepast twoyears, anddonothaveany–significantbusinessrelationshipwiththecompanyor itsGroup(customer, supplier, competitor, service provider, creditor,banker,etc.);are not a significant shareholder of the company and do not–holdasignificantpercentageofvotingrights;do not have a close relationship or family connection with a–corporateofficerorasignificantshareholder;havenotbeen,overtheprevioussixyears,aStatutoryAuditor–ofthecompany.

The Supervisory Board notes that, to date, five members of theBoard:PauleCellard,SophieDesormière,FlorenceNoblot,MichelRollier and Bertrand Parmentier, meet these criteria and cantherefore be deemed to be independent members, with nomaterialrelationshipwithSomfySAoritsManagement,orwithacompany consolidated by the Group, that may affect his/herfreedomofjudgement.

Summarytable:

IndependentmembersoftheSupervisoryBoard

MichelRollier PauleCellard

SophieDesormière

FlorenceNoblot

BertrandParmentier

Explanationintheeventof

non-compliance

ArenotandhavenotbeenanemployeeoranexecutivecorporateofficerofthecompanyoranyotherGroupcompanyduringthelastfiveyears

X X X X X

Havenothad,duringthepasttwoyears,anddonothaveanysignificantbusinessrelationship*withthecompanyoritsGroup(customer,supplier,competitor,serviceprovider,creditor,banker,etc.)

X X X X X

Arenotasignificantshareholderofthecompanyanddonotholdasignificantpercentageofvotingrights

X X X X X

Donothaveacloserelationshiporfamilyconnectionwithacorporateofficerorasignificantshareholder

X X X X X

HavenotbeenaStatutoryAuditorofthecompanyovertheprevioussixyears

X X X X X

Conclusionregardingindependence Independent Independent Independent Independent Independent

Wherenecessary,thematerialityofrelationshipsmaybediscussedandtheassessmentcriteriaclarifiedataBoardmeeting.Todate,nomaterial*businessrelationshipexists.

EXPERTISEANDEXPERIENCEOFTHEMEMBERSOFTHESUPERVISORYBOARD

totheGroupherexperiencegainedwiththeDHLGroupinEuropeand Asia (China and Singapore) in strategy, sales andmarketing;and Bertrand Parmentier brings to the Group his international

As regards the independent members of the Supervisory Board, experience gained with the Groups Pierre Fabre and Latécoère,PauleCellardbrings to theGroupher internationalexperience in notablyinstrategy,organisationandfinance.finance,riskmanagementandcompliance;MichelRollierbringstothe Group the full breadth of his industrial and internationalexperiencegainedwiththeMichelinGroup,particularlyinfinance,strategy and marketing; Sophie Desormière brings to the Groupher industrial and international experience gained first with theValeo Group and then the Solvay Group in strategy, sales andmarketing,aswellasherexpertise in investment strategygainedasChiefExecutiveOfficerofAALPSCapital;FlorenceNoblotbrings

The othermembers of the Supervisory Board, in addition to therespectiveexpertiseandprofessionalexperiencetheybringtotheGroup, are members of the family and therefore have a familycode of ethics, which reinforces the shared respect for theshareholders’ agreement. Moreover, their own substantialindividual investment naturally motivates their long-termcommitmentandthustheiraimtocreatesustainablevalueforallthestakeholdersofSomfySA.



OPERATIONOFTHESUPERVISORYBOARD

Thecompanybylawsdefineandspecifythetermsandconditionsgoverning the composition of the Supervisory Board. The mainprovisionsarethefollowing:Supervisory Boardmembers, the number ofwhich cannever fallbelowthelegalthresholdnorexceedthelegallimit,areappointedinaccordancewiththeconditionsspecifiedbylawforaperiodoffour years. As an exception and solely to enable theimplementationormaintenanceof staggered termsofoffice, theOrdinaryGeneralMeetingmayappointoneormoremembersoftheSupervisoryBoardforatermofone,twoorthreeyears.AlloutgoingSupervisoryBoardmembersmaybereappointed.The termof office of a SupervisoryBoardmember ceases at theend of the Shareholders’ Ordinary General Meeting called toapprovethefinancialstatementsforthefinancialyear justendedandheldintheyearthatthetermofofficeofthesaidmemberoftheSupervisoryBoardexpires.NoonemaybeappointedasamemberoftheSupervisoryBoard,if,beingover75yearsold,theirappointmentleadstooverathirdofthemembersoftheSupervisoryBoardbeingoverthatage.TheSupervisoryBoardmeetsatleastonceaquarteronanagendadraftedbyitsChairman.Duringthe2020financialyear, itmetoneight occasions with an attendance rate of 97%. Due to thepandemic, theBoardhasonlybeenable tomeet inpersonthreetimes, with sessions taking place by audiovisual conference onthree occasions, and the Board has been consulted in writingtwice.Supervisory Board meetings either take place at the registeredoffice or at any other location specified in the notice of themeeting.Pursuant to Article19 of the bylaws and Article5 of the internalregulations,SupervisoryBoardmemberswhoparticipateinBoardmeetings using videoconferencing or telecommunication meansboth enabling them to be identified and guaranteeing theireffectiveparticipation,inaccordancewiththeconditionsprovidedforbytheregulations,aredeemedtobepresentforquorumandmajority calculation purposes. However, this provision does notapplytothereviewandauditofparentcompanyandconsolidatedfinancial statements. It will be proposed at the next GeneralMeetingthatthisprovisionofthebylawsbeapplicableinallcases,withtheexceptionofthoseexcludedbylaw.It is specified that, in accordancewith theMiddlenext Code, thephysical presence of members is preferred and, if members areunable to attend, videoconferencing is preferred over telephoneconversations(excludingtheexceptionalcircumstancesrelatedtothepandemic).At each ordinary meeting, the Management Board presents areport on the operations and results of the Group and its mainsubsidiaries for the quarter just ended. A detailed incomestatement with commentary is presented by the ManagementBoard for every half-year end and year-end. In addition, theSupervisoryBoardreceivesamonthlysalesreport.Withinthreemonthsfollowingtheendofeachfinancialyear,theparent company and consolidated financial statements approvedby theManagementBoardare sent to theSupervisoryBoard forreview.The Board then presents its observations on the ManagementBoardreportaswellasonthefinancialstatementstotheGeneralMeeting; these observations are included in this report oncorporategovernance.

For the approval of the half-year financial statements, only theconsolidated financial statements areprepared and submitted totheSupervisoryBoardwithinthreemonthsofthehalf-yearend.The Supervisory Board asks the Management Board andManagement to provide any information or analysis they deemnecessaryortosubmitapresentationonanyspecificsubject.In accordance with the law, the Supervisory Board providesguidelines to the Management Board so that commitments todeposits, sureties and guarantees are validly provided by thecompany.TheauthorisationoftheSupervisoryBoardisrequiredineverycasewhereacommitmentdoesnotmeet theseconditions(exceptasotherwiseprovidedintheregulations).ItisnotedthatsomechangesregardingthemembersrepresentingemployeesontheBoardsofthecompaniesfulfillingcertaincriteriahave been made under the Pacte law, as a result of which thecompany’s bylaws were amended during the Shareholders’Meeting of 24June 2020, in order to include, within a newArticle18 bis of the bylaws, the provisions relating to theprocedureforappointingmembersrepresentingemployees.Ifthecompany meets the conditions for the application ofArticleL.225-79-2oftheCommercialCodeandcannotinvoketheexceptions set out by this same text, the Supervisory Board willinclude one (or two) member(s) representing the Group’semployees, appointed by theGroup Committee. Pursuant to theabove, the member representing employees on the SupervisoryBoard was appointed on 17September 2020 by the GroupCommittee, and at itsmeeting of 19November 2020, the BoardrecognisedhisappointmentasamemberofsaidBoard.TherulesofoperationoftheSupervisoryBoardarespecifiedinitsinternal regulations, which are available on the company’swebsite.The Board’s internal regulations also include provisions aimed atpreventingandmanagingconflictsofinterest.In this respect, the internal regulations specify that “should asituation arise where there appears to be a conflict of interestbetweencorporateanddirectorindirectpersonalinterests,ortheinterests of the shareholder or group of shareholders theyrepresent,theBoardmemberconcernedmust:

inform theBoard of this conflict of interest as soon as he/she–becomesawareofit;takeallappropriateactioninrelationtoexercisinghis/herterm–ofoffice.

Dependingonthecase,he/sheshalltherefore:abstainfromparticipatingindiscussionsandfromvotingonthe–relevantdeliberation;refrainfromattendingBoardmeetingsduringtheperiodhe/she–isfacedwithaconflictofinterest;resignfromhis/herdutiesasamemberoftheBoard.–

TheBoardmembermaybe held liable for failing to complywiththeseabstentionandnon-attendancerules.Furthermore, the Chairman of the Board will not be obliged todisclose information or documentation relating to the matter indisputetoanymember(s)aboutwhomtheyhavestronggroundsforsuspectingis(are)inapositionofconflictofinterestwithinthemeaningofthisparagraph,andwill informtheSupervisoryBoardofthisactofnon-disclosure.”At its meeting of 13May 2020, the Board conducted an annualreviewof the knownpotential conflicts of interest in accordancewiththeR2recommendationoftheMiddlenextCode.The main issues discussed during meetings of the SupervisoryBoardduringthefinancialyearwerethefollowing:

eachquarter,apresentationofthehighlightsandtheBalanced–ScoreCard;regularupdateswithinthecontextoftheCovid-19pandemic;–



Ambition2030-Presentationofthestrategicroadmap;–regularupdatesontheimplementationoftheneworganisation;–presentation of the Human Resources & Organisation–DepartmentandtheHRroadmap;presentation of the Strategy & Insights Department and their–roadmap–UpdateontheGroup’smarketshares;presentation of the Engineering & Customer Satisfaction–DepartmentandregularupdatesontheSo!One(newERP)andMESprojects;presentationoftheOperations&SupplyChainDepartmentand–theirroadmap;presentationoftheSalesDepartments:South&East–North&–West;presentationoftheFinanceDepartmentandtheirroadmap;–presentationoftheBFTAccess&Convergenceproject;–presentationofthe“Manage”procedure;–regularupdatesontheSustainableDevelopmentpolicyapplied–acrosstheGroup;updateontheanti-corruptionroadmap-Sapin2law;–update on the assessment by the Supervisory Board of its–operationandthepreparationofitswork;updateontheindependenceofthemembersoftheSupervisory–Board;review of the company’s policy regarding equality in the–workplaceandequalpay;updateonthecompositionoftheSpecialisedCommittees;–reviewofAuditCommitteereports;–findingsoftheRemunerationCommittee;–settingtheremunerationpolicyofcorporateofficers;–breakdownoftheremunerationofmembersoftheSupervisory–Board;variable remuneration regarding the respective termsof office–of the Chairman and the member of the Management Boardand Chief Financial Officer for the financial year just ended;guidelines for determining the variable remuneration ofManagement Board members for the coming financial year;fixed remuneration regarding the respective terms of office ofthemembersoftheManagementBoardforthecomingfinancialyear; PER (Prime Équivalent Retraite - Pension EquivalentPremium)premiumrelatedtotherespectivetermsofofficeofManagementBoardmembersforthecomingfinancialyear;implementationoftheprocessforassessingcurrentagreements–concludedunderstandardconditions;implementationoftheprocessforselectingManagementBoard–membersunderthePactelaw;presentationofthemainbudgetprioritiesfor2021;–recognition of the appointment of a Board member–representing employees appointed by the Group Committeeand setting of the time required for the performance of theirroleandidentificationofthearrangementsfortheirtraining;updateoftheSupervisoryBoard’sinternalregulations.–

COMMITTEESESTABLISHEDBYTHESUPERVISORYBOARD

AuditCommittee

With regard to the Audit Committee, the company applies therecommendations of the AMF’s working group chaired byMrPoupart Lafargeon theAuditCommitteeof22July2010.Therecommendations in respect of the composition and chairing oftheCommittee,thecompetenceofitsmembersanddefinitionsofindependence,theoperation(disclosure,evaluationandreportingontheworkundertaken),aswellastherecommendationsrelatingtotheperformanceofitslegalresponsibilitieshavebeenfollowed.Follow-up work on the effectiveness of the internal control andriskmanagementsystemshasalsobeencarriedout.

In 2020, as part of its assignment relating to risks, the AuditCommitteemonitored risks and updated the risk mapping at anextraordinarymeeting of theAudit Committee, duringwhich theComplianceandRiskManagementOfficerpresentedtherelevantinformation.TheAuditCommitteecomprisesthreemembers:VictorDespature,Chairman, and Paule Cellard and Bertrand Parmentier, bothindependentmembers inaccordancewith thecriteriamentionedin the above paragraph, “Independence of the members of theSupervisoryBoard”.Victor Despature has accounting expertise. He is a CharteredAccountantandanAuditor(stateregistered),andperformedtheseroles from 1983 to 2000. Since then, he served on themanagementofamajor family-ownedgroup from2002 to2006,actingasChairmanoftheLegalCommitteefrom2002to2008andasChairmanoftheSupervisoryBoardfrom2012to2017.HewasalsoamemberoftheRemunerationCommitteeofthisgroupfrom2002to2017.Between2000and2017,healsoledamedium-sizedcompany operating in the aeronautic sub-contracting sector andwas theChairmanof the latter’sSupervisoryBoard from2017 to2020. He has also been a member of the Board of Directors ofEdifySA since 16September 2014 and Chairman of its AuditCommitteesince19March2015.PauleCellard,agraduateofESCParis(businessschool)andwithaMaster’sdegreefromtheParisAssasLawSchool,hasheldvariousoperationalroles inCorporateandInvestmentBanking.Inparticular,between2006and2009shewasCEOofGestionPrivée Indosuez,andwas subsequently,until2012,GlobalDirectorofComplianceforCréditAgricoleCorporate&InvestmentBank.SinceNovember2012,shehasbeenaDirectorofCAINDOSUEZWealthManagementEurope,whereshehasbeenchairingtheAuditandRiskCommitteesinceDecember2015.SinceFebruary2017,shehasbeenaDirectorofHSBCFranceandisalsoa member of the Risk and Internal Audit Committees of HSBCFrance. She has expertise in the financial field and extensiveexperienceinriskmanagement.AgraduateofHEC(Parisbusinessschool), Bertrand Parmentier has accumulated a wealth of solidexperience in corporate finance (audit, treasury, financing,management control, internal control, risk management,corporate finance, merger-acquisitions, restructuring, listedcompanyfinancialcommunication)throughoutacareerinindustrywhich led him to occupy positions of increasing responsibility inthe administrative and financial fields, followed by generalmanagementpositionswithintheShell(1979-1988)andAubertetDuval (1988-1991/CFO) Groups as well as at Laboratoires PierreFabre where he successively held the positions of CFO(1991-1996), CEO responsible for Finance, Procurement and IT(1996-2008); and later at aeronautical manufacturer Latécoèrewhere he was CEO and CFO, and then Chairman of theManagement Board (2008-2013), it may be noted that in 2013,following the death of Pierre Fabre, he took the helm of theeponymouspharmaceutical anddermo-cosmetic groupwhereheremainedinchargeuntilhisretirementinJune2018.TheCommittee’sdutiesareto:

monitor the process of preparing financial information and,–where necessary, formulate recommendations to ensure itsintegrity;monitortheefficiencyof internalcontrolandriskmanagement–systems, as well as of the internal audit where applicable,regarding the processes related to the preparation andprocessing of accounting and financial information, without itaffectingitsindependence;monitor the completion by the Statutory Auditors of their–assignment,takingintoaccounttheobservationsandfindingsofthe Haut Conseil du Commissariat aux Comptes (StatutoryAuditors’ Supervisory Body) following the audits performedpursuanttoArticlesL.821-9andsubsequent;ensuresthelatter’sindependence;–



participateintheirselectionbyissuingarecommendationonthe–Statutory Auditors proposed for appointment by the GeneralMeeting;approve theprovisionof servicesother than the certificationof–the financial statements,mentioned inArticleL.822-11-2of theCommercialCode.

The Audit Committee regularly reports on the performance of itsassignments to the Supervisory Board, and also reports on theresultsoftheassignmenttocertifythefinancialstatements,ontheway in which this mission has contributed to the integrity offinancialinformationandontheroleithasplayedinthisprocess.Itshall inform the Supervisory Board without delay of any difficultyencountered.Sinceitscreation,ithasmetateachhalf-yearandyear-endbalancesheetdate.Itmeetsasoftenasnecessary,andatleasttwiceeveryfinancial year, prior to the Supervisory Board’s review of thehalf-year and annual financial statements and/or the proposedappointmentofStatutoryAuditors.During the 2020 financial year, the Audit Committeemet on fouroccasionseachtimewithallmembersinattendance.AtthevariousAuditCommitteemeetings,theChiefFinancialOfficerand the Group Head of Accounting, Consolidation and Treasurypresented the financial position of the Group, the accountingoptionsadopted,theriskexposure,thesignificantoff-balancesheetcommitmentsandthechanges in theconsolidationscope; InternalAuditpresentedtheresultsofauditscarriedoutandtheproposedannualauditplan,whiletheresultsoftheriskmappingupdatewaspresentedbytheComplianceandRiskManagementOfficer.In addition to the recurring topics set out above, the followingwerespecificallypresentedtotheAuditCommitteein2020:

an annual update on the Group’s ethics policy and–implementation of the anti-corruption programme to complywith the “Sapin2” Act, presented by the Compliance and RiskManagementOfficer;a presentation of the new audit approach, illustrated with–examples,bytheStatutoryAuditors;update on the impact of IFRS16 in the Group's consolidated–financial statements by the Group Head of Accounting,ConsolidationandTreasury;a summary of the main recent and upcoming regulatory–developments, and in particular the impact of the pandemic inthe presentation of the financial statements by the StatutoryAuditors.

Pursuant to ArticleL.823-16 of the Commercial Code, theStatutory Auditors presented to the Supervisory Board theirgeneral work programme as well as the various surveys theycarried out; the changes that they felt should be made to thefinancialstatementsorotheraccountingdocumentsthatrequiredapproval, making any relevant comments about the valuationmethods used in their preparation; possible irregularities anderrors discovered and the findings leading to the aboveobservations and corrections on the results of the periodcomparedwiththoseofthepreviousperiod.Inaddition,everyyeartheStatutoryAuditorssubmittotheAuditCommittee a declaration of independence and an update of theinformation described in ArticleL.820-3 detailing the servicesprovidedby themembersof thenetwork towhich the StatutoryAuditorsareaffiliated,aswellas servicesother than theauditofthefinancialstatements.In accordancewith the obligation arising from the reformof theaudit, the rules for the approval by the Audit Committee of theservicesprovidedbytheauditorshavebeenformallysetout inaprocedure.Thetotalcostof theseservices is reported innote14to the consolidated financial statements. Furthermore, theStatutory Auditors and the Audit Committee had a number ofdiscussionsaboutthesupplementaryreportpreparedfortheAuditCommitteebytheStatutoryAuditors.

Withregardtoworkingmethods:aminimumtimeperiodfor theexamination of the financial statements was complied with toenabletheAuditCommitteetoavailoftheoptionofusingexternalexperts, as well as interviewing the Chief Financial Officer,StatutoryAuditorsandtheInternalAuditOfficer.TheChairmanof theAuditCommittee reports to theSupervisoryBoard on the work carried out by the Audit Committee and itsfindingsduringtheSupervisoryBoardmeetingscalledtoapprovethehalf-yearandannualfinancialstatements.Minutes of each Audit Committee meeting are provided to theSupervisoryBoardforitsinformation.

RemunerationCommittee

TheRemunerationCommitteecurrentlycomprisestwomembers:Michel Rollier, Committee Chairman (independent member) andVictor Despature. Its mission is to submit proposals to theSupervisory Board, in particular in respect of the amount of andcalculation methods for corporate officers’ remuneration,including findings on the variable remuneration for the financialyearjustendedandproposalstobeissuedforthecomingfinancialyear, and to issue an opinion concerning the amount of theremunerationofSupervisoryBoardmembers.External personswho are notmembersmay attendmeetings attheCommittee’srequest.At leastonceayear, theCommitteecallsona firmspecialised inthe subject of senior executive remuneration, which providesadviceonthepracticesthataregenerallyappliedincompaniesofacomparablesize.During the year just ended, it met three times. The rate ofattendancebythememberswas100%.The Remuneration Committee is called upon to consider thesuccessionofmanagementresultingfromrecommendationR14oftheMiddlenextCode;suchconsiderationtookplaceatitsmeetingof3March2020.Thisitemwillbediscussedagainin2021.Themembersof theRemunerationCommittee reportverbally tothe Supervisory Board on thework carried out and the opinionsissued, thus helping the Board to prepare andmake decisions intermsofcorporateofficers’remuneration.

CONDITIONSOFSHAREHOLDERS’PARTICIPATIONINGENERALMEETINGS—The bylaws set out the following provisions (excluding anyexceptional legal and regulatory provisions related to thepandemic):

all shareholders have a right to attend General Meetings and–participateintheirdeliberations,inpersonorbyproxy;they may vote remotely. If the Management Board or–Supervisory Board provides for this when convening themeeting, all shareholders may also participate in GeneralMeetingsbyvideoconferenceorbyanycommunicationmeansenabling their identification according to the terms andconditions set out by the law and regulations and that arespecified in thenotice of themeeting: the shareholderwill, inthis case, be deemed to be present for the calculation ofquorumandmajority;therighttoparticipate inGeneralMeetings iscontingentupon–the shareholder providing proof of their identity and on theregistrationofthesecuritiesintheirname(orinthenameoftheintermediary recordedontheirbehalf if theyresideabroad)atmidnight Paris time on the secondworking day preceding theMeeting, either in a nominative account or in the records ofbearersharesheldbyanauthorisedintermediary;the attendance in person of the shareholder supersedes all–proxyorremotevoting.



INFORMATIONREGARDINGTERMSOFOFFICEANDDUTIESDURINGTHEFINANCIALYEAR—TERMSOFOFFICEANDDUTIESOFMEMBERSOFTHEMANAGEMENTBOARDDURINGTHEFINANCIALYEAR

JeanGuillaumeDESPATURE–ChairmanoftheManagementBoard

ChairmanoftheSupervisoryBoardofDamartexSA(company●listedonEuronextGrowth–notaGroupcompany),Chairman of the Remuneration Committee andmember of●the Audit Committee of DamartexSA (company listed onEuronextGrowth–notaGroupcompany),Chairman of the Board of Directors of FDS Financière●DéveloppementSuisseSA(notaGroupcompany),DirectorofParvalSA(notaGroupcompany),●ChairmanoftheSomfyCorporateFoundation(asPermanent●RepresentativeoftheFounder–SomfyActivitésSA),Chairman of the Les Petites Pierres endowment fund (as●Permanent Representative of the Somfy CorporateFoundation,itselfrepresentedbySomfyActivitésSA),DirectorofAcaciaSA(notaGroupcompany),●ManagingDirectorofDSGCoordinationCenterSA,●ManagerofFIDEP(notaGroupcompany)andCMC,●Chairman and Chairman of the Supervisory Board of Somfy●ProtectbyMyfox.

PierreRIBEIRO–MemberoftheManagementBoardandChiefFinancialOfficer

Director of Asian Capital International Limited, Sino Global●International Holdings Limited, Sino Link Trading Limited,New Unity Limited, Hong Kong CTLT Trade Co., Limited,SomfyKabushikiKaisha,FIGESTBVandPROMOFIBV,DirectorandVice-ChairmanofSomfyActivitésSA,●PermanentRepresentativeofSomfyActivitésSA,Managerof●Somfybat,MemberoftheBoardofDirectorsofBFTSpA,●DirectorofDSGCoordinationCenterSA.●

The above terms of office are exercised within unlisted Groupcompanies,unlessotherwiseindicated.

TERMSOFOFFICEANDDUTIESOFMEMBERSOFTHESUPERVISORYBOARDDURINGTHEFINANCIALYEAR

PauleCELLARD–IndependentmemberoftheSupervisoryBoard

MemberoftheAuditCommitteeofSomfySA,●MemberoftheSupervisoryBoardofDamartexSA(company●listedonEuronextGrowth),Chair of the Audit Committee of DamartexSA (company●listedonEuronextGrowth),Member of the Remuneration Committee of DamartexSA●(companylistedonEuronextGrowth),Member of the Board of Directors of INDOSUEZ Wealth●ManagementEurope,Chair of theAudit Committee andof theRiskManagement●and Internal Audit Committee of INDOSUEZ WealthManagementEurope,MemberoftheBoardofDirectorsofHSBCFrance,●Chair of the Risk and Internal Audit Committees of HSBC●France.

VictorDESPATURE–Vice-ChairmanoftheSupervisoryBoard

ChairmanoftheAuditCommitteeofSomfySA,●MemberoftheRemunerationCommitteeofSomfySA,●MemberoftheSupervisoryBoardofMCSASA,●ManagerofSARLMCSA-Tunis,andSCsVicmaandDevin-VD,●DirectorandChairmanoftheAuditCommitteeofEdifySA.●

MichelROLLIER–ChairmanoftheSupervisoryBoard–IndependentmemberoftheBoard

ChairmanoftheRemunerationCommitteeofSomfySA,●Chairman of the Supervisory Board of Michelin (company●listedonEuronext),ChairmanoftheBoardofDirectorsofSiparexAssociés,●Chairman of the Association Nationale des Sociétés par●Actions(ANSA).

AnthonySTAHL–MemberoftheSupervisoryBoard

MemberoftheSupervisoryBoardofDamartexSA(company●listedonEuronextGrowth),ChairmanoftheManagementCommitteeofFIDEP.●

MarieBAVAREL-DESPATURE–MemberoftheSupervisoryBoard

MemberoftheSupervisoryBoardofDamartexSA(company●listedonEuronextGrowth),ManagerofFIDEP,●Member of the Board of Directors of the On Seniors’ Side●Foundation(Damartex).

SophieDESORMIÈRE–IndependentmemberoftheSupervisoryBoard

MemberoftheBoardofDirectorsofGentherm,●Chair of the Nominating and Corporate Governance●CommitteeofGentherm,ChiefExecutiveOfficerofAALPSCapital.●

FlorenceNOBLOT–IndependentmemberoftheSupervisoryBoard

MemberoftheSupervisoryBoardofElisSA,●Chair of the Corporate Social Responsibility Committee of●ElisSA.

BertrandPARMENTIER–IndependentmemberoftheSupervisoryBoard

MemberoftheAuditCommitteeofSomfySA,●DirectorofthePierreFabreFoundation,●Director of Secours Catholique Caritas France, Chairman of●theTarn-Aveyron-LozèreDelegation,ChairmanoftheCyladConsultingCorporateFoundation.●

ArthurWATIN-AUGOUARD–MemberoftheSupervisoryBoardrepresentingemployees

Director-AssociationSaintPierredeTarentaise.●

Apart from the terms of office and duties performed by themembersoftheSupervisoryBoardwithinSomfySA,all theothertermsofofficeanddutiesareperformedoutsidetheGroup.



REGULATEDAGREEMENTS—Please note that no regulated agreement concluded andauthorised during previous financial years and with continuingeffectduring the financial year just ended is tobe reported, andthatnonewagreementsofthesamenatureasthosereferredtoinArticlesL.225-86 and subsequent of the Commercial Code wereconcludedduringthe2020financialyear.

AGREEMENTSCONCLUDEDBETWEENACORPORATEOFFICERORSHAREHOLDERHOLDINGMORETHAN10%OFVOTINGRIGHTSANDACONTROLLEDENTITY(EXCLUDINGCURRENTAGREEMENTS)—Nil.

EVALUATIONPROCEDURESFORCURRENTAGREEMENTSCONCLUDEDUNDERSTANDARDCONDITIONS–ASSESSMENTOFTHEABSENCEOFCURRENTAGREEMENTSCONCLUDEDUNDERSTANDARDCONDITIONSASREFERREDTOINARTICLEL.225-86OFTHECOMMERCIALCODE—Anevaluationprocedureforcurrentagreementsconcludedunderstandard conditions was adopted at the Supervisory Boardmeetingof4March2020.Thisprocedureprovidesthateachyearthecompany’sFinanceandLegalDepartmentslisttheagreementscovered by ArticleL.225-86 of the Commercial Code and assesswhether the criteria for qualifying as a current agreementconcluded under standard conditions are met. The Finance andLegalDepartments reportonceayearontheirwork to theAuditCommitteeandtotheBoard.At theBoardmeetingof 10March2021, itwasnoted that thereare no current agreements concluded under standard conditionsasreferredtoinArticleL.225-86oftheCommercialCode.

AUTHORISATIONS—TheManagementBoardbenefitsfromthefollowingauthorisations:

DateofAGM Dateauthorisation

expires

Authorisedamount Usedduringthefinancialyearended31December2020

Residualamountat31December2020

Authorisationtoissuestockoptions

ExtraordinaryGeneralMeeting

16May2018

15July2021

1.5%ofsharecapitalondateofAGMChargedtothe

allocationoffreeshares

Nil 1.5%ofsharecapitalondateofAGM

Authorisationtograntexistingfreeshares

ExtraordinaryGeneralMeeting

22May2019

21July2022

1.5%ofsharecapitalondateofAGMChargedtothe

allocationofSOs*

**1.4326%ofsharecapitalondateof

AGM

Stockoptions.*Freeallocationof17,856shares,representing0.048%ofthesharecapital,decidedbytheManagementBoardon31August2020and25November**2020.

ItisfurtherspecifiedthattheManagementBoardhasasharebuybackauthorisation,grantedbytheGeneralMeetingof24June2020inits15thordinaryresolution,detailsofwhicharesetoutinthesectiononthebuybackofownsharesintheManagementBoard’smanagementreport.Thisauthorisationisvaliduntil23December2021.TheManagementBoardalsohasanauthorisationtocancelthesharesboughtback by the company, which was granted by the General Meeting of 24June 2020 in its 16thextraordinary resolution. This latterauthorisationcoversamaximumof10%ofthesharecapitalandisvaliduntil23June2022.Itwasnotusedduringthe2020financialyear.The Management Board does not benefit from any delegation of authority or powers granted by the General Meeting in respect ofincreasesincapitalinrelationtoArticlesL.225-129-1andL.225-129-2oftheCommercialCode.



INFORMATION ON REMUNERATION

CORPORATEOFFICERS’REMUNERATIONPOLICY(9TH,25TO28THAND33RDRESOLUTIONSOFTHEGENERALMEETINGOF2JUNE2021)—Given the plan to change the company’s governance model,shareholderswillbeaskedtoapprove:

the remuneration policy for the single-tier governance,–Chairman of the Board of Directors, Chief Executive Officer,Deputy Chief Executive Officer and Directors (25th to 28th

resolutions),pendingtheapprovalofthe11thresolutionrelatingto the change to the company’s administration andmanagementformbyadoptingtheformofaBoardofDirectors;theremunerationpolicy fortheChairmanandmembersofthe–ManagementBoard(9thresolution),irrespectiveoftheoutcomeofthevoteonthe11th resolutionrelatingtothechangetothecompany’s administration and management form by adoptingthe formof aBoardofDirectors. This policywill only apply totheperiodfrom1January2021until1June2021intheeventofapprovalofthe11thresolution;theremunerationpolicy fortheChairmanandthemembersof–theSupervisoryBoard(33rdresolution)intheeventofrejectionofthe11thresolution.

1/REMUNERATIONPOLICYFORCORPORATEOFFICERSOFTHECOMPANYWITHABOARDOFDIRECTORS(INTHEEVENTOFAPPROVALOFTHE11THRESOLUTION)

Pendingtheapprovalofthe11thresolutionrelatingtothechangein the company’s administration and management form byadoptingtheBoardofDirectorsform,theremunerationpolicyforthe corporate officers will adopt the same general principles onwhichthepreviousremunerationpolicyfortheManagementandSupervisoryBoardswasbased.

Upon proposal of the Remuneration Committee and taking intoaccount the recommendations of the Middlenext Code, theSupervisoryBoardhasestablishedaremunerationpolicyforeachof the company’s corporate officers that is in line with itscorporateinterest,contributestoitssustainabilityandconformstoitsbusiness strategyasdescribed in thechapter “PresentationoftheGroup”oftheAnnualFinancialReport.Inordertodothis,theSupervisoryBoardhassettheremunerationpolicyforitsexecutivecorporateofficersinrelationtothesecomponents,inparticularbylaying down the criteria for their variable remuneration and thecriteriafortheallocationoffreeshares.Thesecriteriaaretailoredto the company’s strategy and environment in order to promoteits competitiveness over the medium and long term and theachievementofsustainableandprofitablegrowth.

deliberations regarding the setting of the remuneration policyconcerning them. Nor will they be involved in the Board ofDirectors’ decisions on matters of individual remunerationconcerningthempersonally.

The remuneration policy for each of the corporate officers hasbeendeterminedby the SupervisoryBoardupon theproposaloftheRemunerationCommittee, taking intoaccount themannerofexerciseofGeneralManagementwhichmaybedecideduponbythemeetingoftheBoardofDirectorsduetotakeplaceattheendof theGeneralMeeting,namely,a separationof the functionsofChairman and Chief Executive Officer and the appointment of aNon-ExecutiveChairman, aChief ExecutiveOfficer and, upon thelatter’s proposal, a Deputy Chief Executive Officer. The Board ofDirectors will subsequently review and implement theremunerationpolicyontherecommendationoftheRemunerationCommittee. It is specified that the individuals shortlisted for theroles of Chairman, Chief Executive Officer and Deputy ChiefExecutiveOfficerhavenotbeeninvolvedintheSupervisoryBoard

No remuneration component, of any kind whatsoever, may bedetermined, allocated or paid by the company, nor anycommitmentmadebythecompany,ifitdoesnotcomplywiththeapprovedremunerationpolicyor, ifnopolicyis inplace,withtheexistingremunerationorpracticeswithinthecompany.However,under exceptional circumstances the Board of Directors maydepart from application of the remuneration policy, if suchdeparture is temporary, is in the company’s interest and isnecessary to ensure the company’s continued existence orviability,onlyforthefollowingremunerationcomponents:annualvariableremuneration,exceptionalremunerationandallocationoffree shares. The Board of Directors will rule on therecommendationof theRemunerationCommittee andwill verifywhetherthisdepartureisinlinewiththecompany’sinterestsandnecessary to ensure the company’s continued existence orviability. This information will be brought to the attention ofshareholdersinthenextreportoncorporategovernance.To establish the remuneration policy for corporate officers, theterms and conditions of remuneration and employment of thecompany’s employees were also taken into account by theRemunerationCommitteeandtheBoardofDirectors,inparticularthe information referred to in paragraph 6, section I of ArticleL.22-10-9(fairnessratios).The Board, acting on a proposal from the RemunerationCommittee, takes the following principles into account, inaccordancewithrecommendationR13oftheMiddlenextCodeonCorporateGovernanceofSeptember2016:

completeness: determination of remuneration received by–executive corporate officers must be complete: fixedcomponents, variable components (bonus), stock options, freeshares, attendance fees, pension terms and special benefitsmustbetakenintoaccountintheoveralllevelofassessmentofremuneration;balance between the elements of the remuneration: each–remuneration component must be substantiated andcorrespondtothecompany’sgeneralinterest;benchmark: the remuneration must be assessed, insofar as–possible, within the context of a business sector and thebenchmark market, and be proportionate to the company’ssituation,whilepayingdueattentiontoitsinflationaryeffects;consistency: executive corporate officers’ remuneration must–bedeterminedinamannerconsistentwiththatofotherofficersandemployeesinthecompany;clarityof the rules: the rulesmustbe simple and transparent;–theperformancecriteriausedtodeterminethevariablepartoftheremunerationor,whereapplicable,theallocationofoptionsor free shares,must be linked to the company’s performance,correspondtoitsgoals,andbedemanding,accountableandtothe greatest extent possible, sustainable. They should bedetailed without however jeopardising the confidentiality thatmaybejustifiedforcertainelements;reasonableness:themethoddeterminingtheremunerationand–allocation of options or free shares must be balanced andsimultaneously take into account the company’s generalinterest,marketpracticesandofficerperformance;transparency: shareholders’ annual information on the total–remunerationandbenefits receivedbyofficers is conducted inaccordancewithapplicableregulations.



REMUNERATIONPOLICYFORTHECHAIRMANOFTHEBOARDOFDIRECTORS(25THRESOLUTION)

The remunerationof theChairmanof theBoardofDirectorswillbecomprisedofthefollowingcomponents:

Fixedremuneration

Itwillbedeterminedtakingintoaccountmarketpracticeandwillbe regularly benchmarked by a recognised and reputable expertfrom a firm specialising in executive remuneration. It will be setupon appointment and will change slightly each year during thetermofoffice,whichwillbesetat fouryears. Itwillbereviewedandbenchmarkedagaineachtimethetermofoffice is renewed.TheremunerationoftheNon-ExecutiveChairmanoftheBoardofDirectorswillnotincludeaPensionEquivalentPremium.Like the othermembers of theBoard ofDirectors, the Chairmanwill also receive remuneration corresponding to his duties as aDirector.

Annualvariableremuneration

The Non-Executive Chairman of the Board of Directors does notreceiveanyvariableremuneration.

Exceptionalremuneration

The Non-Executive Chairman of the Board of Directors does notreceiveanyexceptionalremuneration.

Allocationoffreeshares

TheNon-ExecutiveChairmanof theBoardofDirectors is not thebeneficiaryofanyfreeshareallocations.

Commitments

ItshouldbenotedthattheprospectiveChairmanoftheBoardofDirectorsholdsanemploymentcontractwithinasubsidiaryoftheGroup.ThisemploymentcontractwillbesuspendedonthedateoftheirappointmenttotheBoardofDirectors,foraperiodthatwilllast until the end of their term of office. As a guide, the noticeperiodintheeventofterminationofthisemploymentcontract issixmonths.

Severancepay

TheChairmanoftheBoardofDirectorsdoesnotbenefitfromanyundertakingofthiskindinrespectoftheirtermofoffice.

Pension

The Chairman of the Board of Directors, whose remuneration istreated as a salary, will benefit from the mandatory collectivepensionschemesapplicabletoexecutivesandseniorexecutivesofGroupcompanies.InthecaseofJeanGuillaumeDESPATUREwhois likelytoassumethis role, and who is not territorially eligible for French pensionplans,theapplicableschemewillbethemandatorygroupschemeapplicable to senior executives for companies based in the SwissConfederation.TheChairmanof theBoardofDirectorswill notbeamemberofanydefinedbenefitpension schemecoveredbyArticle L. 137-11oftheSocialSecurityCode(supplementarypensionplan).

Providentfund

The Chairman of the Board of Directors, whose remuneration istreated as a salary, will benefit from the group provident fundscheme (death and disability insurance) which applies to theGroup’sseniorexecutives.Unless they justify personal insurance coverage elsewhere, theywill also be affiliated to the “Mutual Health Insurance” scheme,whichismandatoryforGroupemployees.

Non-competeclause

There is no such commitment concerning the Chairman of theBoardofDirectors.

Employeesavings

The Chairman of the Board of Directors, whose remuneration istreatedasa salary,will benefit from the current incentivebonusscheme and Employee Savings Scheme, which are open to thecompany’semployeesandcorporateofficers.

Benefitsofanykind

The Chairman of the Board of Directors will benefit from acompany car that theymay use privately, andwhichwill be thesubjectofabenefitinkinddeclaration.

REMUNERATIONPOLICYFORTHECHIEFEXECUTIVEOFFICER(26THRESOLUTION)

TheremunerationoftheChiefExecutiveOfficerwillbecomprisedofthefollowingcomponents:

Fixedremuneration

Itwillbedeterminedtakingintoaccountmarketpracticeandwillbe regularly benchmarked by a recognised and reputable expertfroma firm specialising in executive remuneration. It is setuponappointmentandwillchangeslightlyeachyearduringthetermofoffice. Itwill be reviewed andbenchmarked again each time theterm of office, which will be set at four years, is renewed. Theremuneration policy will also include the payment of a PensionEquivalent Premium introduced within the company in 2017 forthebenefitofseniorexecutivesandexecutivecorporateofficersinorder to offset the lack of pension contributions on the upperportionsoftheirremuneration.


Variable remuneration will be determined by the Board ofDirectors on the recommendation of the RemunerationCommittee.Itwillbebasedontheachievementofobjectivesthattakeaccountofquantitativefinancialandqualitative,non-financialcriteria.Annualvariableremunerationwillbecappedatamaximumoftheannualbasicfixedremuneration.

For theChief ExecutiveOfficer, this cap is amaximumof87%ofbasic fixed remuneration (BFR), i.e. 72% of the quantitativevariableonfinancialcriteria,and15%ofthequalitativevariableonnon-financialcriteria.



Thecapiscalculatedasfollows:the quantitative component, ranging from 0% to 120% and–basedonfinancialcriteria,appliestothetargetbonusof60%oftheBFR;thequalitativecomponent, rangingfrom0%to15%andbased–onnon-financialcriteria,applies to theBFR.Thiscomponent isweighted by a coefficient of 0 to 1 representing theRemuneration Committee’s assessment of the personal andmanagerialinvolvementofthecorporateofficerconcerned.

Annual variable remuneration will therefore be capped at amaximumof87%oftheBFR,basedonthefollowingformula:maximumannual variable remuneration = (BFR x 60% x 120%) +(BFRx15%x1)

Thecriteriafordeterminingannualvariableremunerationandthemethodsforassessingthesecriteriaareasfollows:

growthandbyitsdifferentialwiththesalesgrowthinrelationtoarangeofbenchmarksconsistingofeightcompaniesdeemedtobecomparable.

for 2021, the quantitative criteria based on financial items–(“financial” criteria) will be profit growth, measured by theaverage growth in COR (Current Operating Result) over twoyears; the growth in profitability of capital used,measured bythe average level of ROCE (Return On Capital Employed) overtwoyears;andlastly,businessdevelopment,measuredbysales

Theexpected levelofachievement for thequantitativecriteriawill be predefined by the Board of Directors further to aproposal by the Remuneration Committee but will not bedisclosedforreasonsofconfidentiality;the qualitative, non-financial criteriawill be predefined by the–Board of Directors further to a proposal by the RemunerationCommittee.For2021,theywillincludeacriterionrelatingtotheDesign&Go-live of theGroup’s transformation programme, acriterion relating to the Cost Leadership, connected withmaterials and electronic components, and lastly a criterionrelating to the implementation of the Sales & Operationsplanning. These non-financial criteria will be weighted by theRemuneration Committee’s assessment of the personal andmanagerialinvolvementofthecorporateofficerconcerned.Theexpectedlevelofachievementforthequalitativecriteriawillbepredefined by the Board further to a proposal by theRemunerationCommitteebutwillnotbedisclosed for reasonsofconfidentiality.

Inbrief,thefinancialandnon-financialcriteriawillapplyasfollows:

Financialcriteria Non-financialcriteria

ChiefExecutiveOfficer

changeinresults(COR)–increaseinreturnoncapitalemployed–(ROCE)salesgrowth–differentialbetweenSomfysalesandthe–salesofeightbenchmarkcompanies

Group’stransformationprogramme–“CostLeadership”–“Sales&Operationsplanning”–

Thesevariableremunerationcriteriawillcontributetomeetingtheobjectives of the remuneration policy since they are in linewiththe company’s corporate interest, contribute to its sustainabilityandarealignedwithitsbusinessstrategy.Todeterminetheextenttowhichthefinancialperformancecriteriaprovided for the calculation of variable remuneration have beenmet, the Board of Directorswill notably rely on the consolidatedfinancialstatementsauditedbytheStatutoryAuditors.


The Board of Directorsmay decide, further to a proposal of theRemuneration Committee and under very specific circumstances,tograntexceptional remuneration to theChiefExecutiveOfficer.Suchapaymentmaynotablybemadeintheeventofcompletionof a major transaction for the company or of exceptionalover-achievement that is not taken into account in the criteriadeterminingthevariableremunerationforthefinancialyear.TheBoardofDirectorsmayalsodecide, further toaproposalbytheRemunerationCommittee, tograntexceptional remunerationtotheChiefExecutiveOfficerintheeventofeconomic,politicalorsocial events, in response towhich the company’s governance isrequired to take exceptional action to preserve the company’sinterests.In every case, the amount of exceptional remuneration thusdecidedmaynotexceedamaximumof100%of thefixedannualremuneration.

Thepayment of variable, andpossibly exceptional, remunerationelements allocated in relation to financial year N to the ChiefExecutiveOfficerissubjecttoapprovalinyearN+1bytheOrdinaryGeneralMeetingof theremunerationelementspaid inyearNorallocatedinrelationtofinancialyearN.


TheChiefExecutiveOfficermaybethebeneficiaryofallocationsoffreeshares,subjecttooneormoreperformanceconditions,underthesameconditionsandsubjecttothesameperformancecriteriaas for allocations granted to the Group’s executives and seniorexecutives.The performance criteria used are usually based on the level ofCurrent Operating Result and the development of Sales Growth.Otherperformance-basedcriteriamayalsobetakenintoaccount,basedinparticularoncorporatesocialresponsibility.Performance-related conditions will be assessed over a periodidenticaltothatusedfortheplan’svestingperiod.Except under specific circumstances, these free share allocationswill be granted on an annual basis and will be limited on initialallocation to an allocated amount that corresponds to the bookvaluecalculatedat fairvalueandwhichmaynotexceed150%oftheannualfixedremuneration.In the event of a change to the company’s governance and thearrivalofanewChiefExecutiveOfficerfromoutsidetheGroup,aspecificallocationmaybeauthorisedbytheBoardofDirectors inthe form of an introductory bonus. In such a case, the amountgranted,correspondingtothebookvaluecalculatedatfairvalue,may not exceed 300% of the annual fixed remuneration. Thevestingperiodofthisplanmustbeaminimumoftwoyears.In order to ascertain to what extent the performance-basedcriteria set out in relation to the free allocation of performanceshares have been fulfilled, the Board of Directors will set thefollowing methods of assessment: the financial performancecriteria will be based on indicators that will be reviewed by theStatutory Auditors as part of their annual audit of the financialstatements. In addition, the Group’s Internal Audit Department



will be entrusted by the Board of Directors with an auditassignment to validate the data taken into account for thecalculationofperformanceconditions.The vesting and, where applicable, retention periods applicableaftervestingwillbedefinedbytheBoardofDirectorsatthetimeofallocationandwillcomplywiththeauthorisationoftheGeneralMeeting,i.e.:

theallocationofshareswillbedefinitiveattheendofavesting–periodwhosedurationmaynotbelessthanoneyear;where applicable, the shares shall be retained for aminimum–period at least equal to that required to ensure that thecumulative duration of the vesting periods, and wherenecessary, the retention periods, may not be less than twoyears.

Moreover,attheBoardofDirectors’meetingof2June2021,itwillbe proposed that the number of shares that every corporateofficer will be required to retain in registered form until thetermination of their functions be set at 25% of the total sharesallocatedtothemfreeofcharge;thispercentagemaybereducedto 20% at the end of a period of four years from the allocation,thensuccessivelyto15%sixyearsaftertheallocation,to10%eightyearsaftertheallocationandto5%untiltheyleavetheirrole.Thesefreeshareallocationcriteriawillcontributetotheobjectivesof the remuneration policy since they will be in line with thecompany’s corporate interest, will contribute to its sustainabilityandwillbealignedwithitsbusinessstrategy.

Commitments

It should be noted that the prospective Chief Executive Officerholds an employment contractwithin a subsidiary of the Group.Thisemploymentcontractwillbesuspendedonthedateof theirappointment to the role of Chief Executive Officer, for a periodthatwill lastuntil theendof their termofoffice.Asaguide, thenotice period in the event of termination of this employmentcontractissixmonths.

Severancepay

TheChiefExecutiveOfficerdoesnotbenefitfromanyundertakingofthiskindinrespectoftheirtermofoffice.Intheeventofachangeinthegovernanceofthecompanyandthearrival of a new Chief Executive Officer from outside the Group,theBoardofDirectorsmayintroduceforthenewarrivalseverancepay in the event of early termination of their contract notexceedingtwoyears’fixedandvariableremuneration,subjecttoaminimum of two years in office and to the same financial andnon-financial criteria as those used to determine the annualvariableremuneration.Thisseverancepaywillbepaidinfullifthevariable remuneration rate for the financial year preceding thedeparture represents at least 60% of the target bonus. Below arateof60%,theseverancepaywillbereducedproportionally.

Pension

The Chief Executive Officer, whose remuneration is treated as asalary,willbenefitfromthemandatorycollectivepensionschemesapplicable to executives and senior executives of Groupcompanies.Theywillnotbeamemberofanydefinedbenefitpensionschemecovered by Article L. 137-11 of the Social Security Code(supplementarypensionplan).

Metalwork Industry (IDCC 650). This is themandatory scheme inforcewithinthecompany.

Like Group executives, the Chief Executive Officer will benefit,upon retirement, from a retirement bonus (Indemnité de Fin deCarrière, or IFC) as provided for by the National CollectiveBargaining Agreement for Executives and Engineers in the

Providentfund

The Chief Executive Officer, whose remuneration is treated as asalary,willbenefit fromthegroupprovident fundscheme (deathand disability insurance) applicable to the Group’s seniorexecutives.Unless they justify personal insurance coverage elsewhere, theywill also be affiliated to the “Mutual Health Insurance” scheme,whichismandatoryforGroupemployees.

Non-competeclause

There is no such commitment concerning the Chief ExecutiveOfficer.Intheeventofachangeinthegovernanceofthecompanyandthearrival of a new Chief Executive Officer from outside the Group,the Board of Directorsmay decide to introduce non-competitioncompensationforthisnewmemberforaperiodofoneyear,whichmayberenewableonceandapplicabletocompaniesinvolvedinacompetingbusiness. TheBoardofDirectorswill decide, after theChiefExecutiveOfficerhasceasedtheirfunctions,whetherornotto apply this non-compete clause, from which the outgoingmember may be exempted. Its payment will, in any case, bewaivedintheeventofretirement.

Employeesavings

The Chief Executive Officer will be a beneficiary of the currentincentive bonus scheme andEmployee Savings Plan, which areopentothecompany’semployeesandcorporateofficers.

Benefitsofanykind

During the actual period of the corporate office, the ChiefExecutive Officer will be the beneficiary of Senior Executives’Insurance (GSC or Garantie Sociale des Chefs d’entreprises)coveringtheriskofremoval fromcorporateoffice,subjecttothewaiting periods and the usual limitations of this scheme.Contributions to this scheme are subject to a benefit in kinddeclaration.The Chief ExecutiveOfficerwill benefit from a company car thattheymayuseprivately,andwhichwillbethesubjectofabenefitinkinddeclaration.

REMUNERATIONPOLICYFORTHEDEPUTYCHIEFEXECUTIVEOFFICER(27THRESOLUTION)

The remuneration of the Deputy Chief Executive Officer will becomprisedofthefollowingcomponents:

Fixedremuneration

Itwillbedeterminedtakingintoaccountmarketpracticeandwillbe regularly benchmarked by a recognised and reputable expertfroma firm specialising in executive remuneration. It is setuponappointmentandwillchangeslightlyeachyearduringthetermofoffice, which will be set at four years. It will be reviewed andbenchmarkedagaineach timethe termofoffice is renewed.Theremuneration policy will also include the payment of a PensionEquivalent Premium introduced within the company in 2017 forthebenefitofseniorexecutivesandexecutivecorporateofficersinorder to offset the lack of pension contributions on the upperportionsoftheirremuneration.




Variable remuneration will be determined by the Board ofDirectors on the recommendation of the RemunerationCommittee.Itwillbebasedontheachievementofobjectivesthattakeaccountofquantitativefinancialandqualitative,non-financialcriteria.Annualvariableremunerationwillbecappedatamaximumoftheannualbasicfixedremuneration.

FortheDeputyChiefExecutiveOfficer,thiscapwillbeamaximumof 75% of basic fixed remuneration (BFR), i.e. 60% of thequantitative variable on financial criteria, and 15% of thequalitativevariableonnon-financialcriteria.Thecapwillbecalculatedasfollows:

the quantitative component, ranging from 0% to 120% and–basedonfinancialcriteria,appliestothetargetbonusof50%oftheBFR;thequalitativecomponent, rangingfrom0%to15%andbased–onnon-financialcriteria,applies to theBFR.Thiscomponent isweighted by a coefficient of 0 to 1 representing theRemuneration Committee’s assessment of the personal andmanagerialinvolvementofthecorporateofficerconcerned.

Annual variable remuneration will therefore be capped at amaximumof75%oftheBFR,basedonthefollowingformula:maximumannual variable remuneration = (BFR x 50% x 120%) +(BFRx15%x1)

Thecriteriafordeterminingannualvariableremunerationandthemethodsforassessingthesecriteriawillbeasfollows:

for 2021, the quantitative criteria based on financial items–(“financial” criteria) will be profit growth, measured by theaverage growth in COR (Current Operating Result) over twoyears; the growth in profitability of capital used,measured bythe average level of ROCE (Return On Capital Employed) overtwoyears;andlastly,businessdevelopment,measuredbysalesgrowthandbyitsdifferentialwiththesalesgrowthinrelationtoarangeofbenchmarksconsistingofeightcompaniesdeemedtobecomparable.Theexpected levelofachievement for thequantitativecriteriawill be predefined by the Board of Directors further to aproposal by the Remuneration Committee but will not bedisclosedforreasonsofconfidentiality;the qualitative, non-financial criteriawill be predefined by the–Board of Directors further to a proposal by the RemunerationCommittee.For2021,theywillincludeacriterionrelatingtotheDesign&Go-live of theGroup’s transformation programme, acriterion relating to the Cost Leadership, connected withmaterials and electronic components, and lastly a criterionrelating to the Design& Go-live of the Leadership Frameworklinkedtothecorporateculture.Thesenon-financialcriteriawillbeweighted by the Remuneration Committee’s assessment ofthe personal and managerial involvement of the corporateofficer concerned. The expected level of achievement for thequalitativecriteriawillbepredefinedbytheBoardfurthertoaproposal by the Remuneration Committee but will not bedisclosedforreasonsofconfidentiality.

Inbrief,thefinancialandnon-financialcriteriawillapplyasfollows:


DeputyChiefExecutiveOfficer


Group’stransformationprogramme–“CostLeadership”–“LeadershipFramework”andcorporate–culture

These variable remuneration criteria contribute to meeting theobjectives of the remuneration policy since they are in linewiththe company’s corporate interest, contribute to its sustainabilityandarealignedwithitsbusinessstrategy.To determine the extent to which the financial performancecriteriaprovidedforthecalculationofvariableremunerationhavebeen met, the Board of Directors will notably rely on theconsolidated financial statements audited by the StatutoryAuditors.


The Board of Directors may decide, further to a proposal of theRemunerationCommitteeandunderveryspecificcircumstances,togrant exceptional remuneration to the Deputy Chief ExecutiveOfficer. Such a payment may notably be made in the event ofcompletionofamajortransactionforthecompanyorofexceptionalover-achievement that is not taken into account in the criteriadeterminingthevariableremunerationforthefinancialyear.TheBoardofDirectorsmayalsodecide, further toaproposalbytheRemunerationCommittee, tograntexceptional remunerationto the Deputy Chief Executive Officer in the event of economic,political or social events, in response to which the company’sgovernance isrequiredtotakeexceptionalactiontopreservethecompany’sinterests.

In every case, the amount of exceptional remuneration thusdecidedmaynotexceedamaximumof100%of thefixedannualremuneration.

Thepayment of variable, andpossibly exceptional, remunerationelements allocated in relation to financial year N to the DeputyChief ExecutiveOfficer is subject to approval in yearN+1 by theOrdinary GeneralMeeting of the remuneration elements paid inyearNorallocatedinrelationtofinancialyearN.


The Deputy Chief Executive Officer may be the beneficiary ofallocations of free shares, subject to one or more performanceconditions, under the same conditions and subject to the sameperformance criteria as for allocations granted to the Group’sexecutivesandseniorexecutives.The performance criteria used are usually based on the level ofCurrent Operating Result and the development of Sales Growth.Otherperformance-basedcriteriamayalsobetakenintoaccount,basedinparticularoncorporatesocialresponsibility.Performance-related conditions will be assessed over a periodidenticaltothatusedfortheplan’svestingperiod.



Except under specific circumstances, these free share allocationswill be granted on an annual basis and are limited on initialallocation to an allocated amount that corresponds to the bookvaluecalculatedat fairvalueandwhichmaynotexceed150%oftheannualfixedremuneration.In the event of a change to the company’s governance and thearrival of a newDeputy Chief ExecutiveOfficer fromoutside theGroup, a specific allocation may be decided by the Board ofDirectorsintheformofanintroductorybonus.Insuchacase,theamountgranted,correspondingtothebookvaluecalculatedatfairvalue,maynotexceed300%oftheannualfixedremuneration.Thevestingperiodofthisplanmustbeaminimumoftwoyears.In order to ascertain to what extent the performance-basedcriteria set out in relation to the free allocation of performanceshares have been fulfilled, the Board of Directors will set thefollowing methods of assessment: the financial performancecriteria will be based on indicators that are reviewed by theStatutory Auditors as part of their annual audit of the financialstatements. In addition, the Group’s Internal Audit Departmentwill be entrusted by the Board of Directors with an auditassignment to validate the data taken into account for thecalculationofperformanceconditions.The vesting and, where applicable, retention periods applicableaftervestingwillbedefinedbytheBoardofDirectorsatthetimeofallocationandwillcomplywiththeauthorisationoftheGeneralMeeting,i.e.:


Moreover,attheBoardofDirectors’meetingof2June2021,itwillbe proposed that the number of shares that every corporateofficer will be required to retain in registered form until thetermination of their functions be set at 25% of the total sharesallocatedtothemfreeofcharge,thispercentagebeingreducedto20%attheendofaperiodoffouryearsfromtheallocation,thensuccessively to 15% six years after the allocation, to 10% eightyearsaftertheallocationandto5%untiltheyleavetheirrole.Thesefreeshareallocationcriteriawillcontributetotheobjectivesof the remuneration policy since they will be in line with thecompany’s corporate interest, will contribute to its sustainabilityandwillbealignedwithitsbusinessstrategy.

Commitments

It should be noted that the prospective Deputy Chief ExecutiveOfficer holds an employment contract within a subsidiary of theGroup.ThisemploymentcontractwillbesuspendedonthedateoftheirappointmenttotheroleofDeputyChiefExecutiveOfficer,fora period that will last until the end of their term of office. As aguide, the notice period in the event of termination of thisemploymentcontractissixmonths.

Severancepay

The Deputy Chief Executive Officer does not benefit from anyundertakingofthiskindinrespectoftheirtermofoffice.

the same financial and non-financial criteria as those used todetermine the annual variable remuneration. This severance paywill be paid in full if the variable remuneration rate for thefinancialyearpreceding thedeparture representsat least60%ofthetargetbonus.Belowarateof60%, theseverancepaywillbereducedproportionally.

Intheeventofachangeinthegovernanceofthecompanyandthearrival of a newDeputy Chief ExecutiveOfficer fromoutside theGroup,theBoardofDirectorsmaydecidetointroduceforthenewarrival severance pay in the event of early termination of theircontract not exceeding two years’ fixed and variableremuneration,subjecttoaminimumoftwoyearsinofficeandto

Pension

TheDeputyChiefExecutiveOfficer,whoseremunerationistreatedas a salary, will benefit from the mandatory collective pensionschemesapplicable toexecutives and senior executivesofGroupcompanies.Theywillnotbeamemberofanydefinedbenefitpensionschemecovered by Article L. 137-11 of the Social Security Code(supplementarypensionplan).Like Group executives, the Deputy Chief Executive Officer willbenefit,uponretirement, fromaretirementbonus (IndemnitédeFindeCarrière, or IFC) asprovided forby theNationalCollectiveBargaining Agreement for Executives and Engineers in theMetalwork Industry (IDCC 650). This is themandatory scheme inforcewithinthecompany.

Providentfund

TheDeputyChiefExecutiveOfficer,whoseremunerationistreatedas a salary will benefit from the group provident fund scheme(death and disability insurance) applicable to the Group’s seniorexecutives.Unless they justify personal insurance coverage elsewhere, theywill also be affiliated to the “Mutual Health Insurance” scheme,whichismandatoryforGroupemployees.

Non-competeclause

There is no such commitment concerning the Deputy ChiefExecutiveOfficer.Intheeventofachangeinthegovernanceofthecompanyandthearrival of a newDeputy Chief ExecutiveOfficer fromoutside theGroup, the Board of Directors may decide to introducenon-competitioncompensationforthisnewmemberforaperiodof one year, which may be renewable once and applicable tocompanies involved in a competing business. The Board ofDirectorswilldecide,aftertheDeputyChiefExecutiveOfficerhasceasedtheirfunctions,whetherornottoapplythisnon-competeclause, from which the outgoing member may be exempted. Itspaymentwill,inanycase,bewaivedintheeventofretirement.

Employeesavings

The Deputy Chief Executive Officer will be a beneficiary of thecurrentincentivebonusschemeandEmployeeSavingsPlan,whichareopentothecompany’semployeesandcorporateofficers.

Benefitsofanykind

Duringtheactualperiodofthecorporateoffice,theDeputyChiefExecutive Officer will be the beneficiary of Senior Executives’Insurance (GSC or Garantie Sociale des Chefs d’entreprises)coveringtheriskofremoval fromcorporateoffice,subjecttothewaiting periods and the usual limitations of this scheme.Contributions to this scheme are subject to a benefit in kinddeclaration.TheDeputyChiefExecutiveOfficerwillbenefitfromacompanycarthat they may use privately, and which will be the subject of abenefitinkinddeclaration.



REMUNERATIONPOLICYFORTHEDIRECTORS(28THRESOLUTION)

The remuneration policy formembers of the Board of Directors,including the Vice-Chairman of the Board of Directors, proposedupontherecommendationsoftheRemunerationCommittee,isasfollows:

theGeneralMeetingallocatestothemembersof theBoardof–Directorsafixedannualsumasremunerationfortheiractivity;the Board of Directors sets the amount allocated to each–member, with the exception of the member representingemployees, according to their actual presenceat themeetingsof theBoard and the specialist committees. The remunerationallocated includes a fixed part that remunerates responsibilityandonepartthatremuneratesattendance;inadditiontotheirremunerationfortheirdutiesasmemberof–the Board of Directors, the Vice-Chairman of the Board ofDirectors will receive specific remuneration for their duties asVice-Chairman. This remuneration, payable from the totalamount of remuneration allocated to the members of theBoard,isfixedandchangesuponeachextensiontotheirtermofoffice, or when the Board observes that there has been apermanentchangetotheVice-Chairman’sworkload;the Board of Directors reserves the right to allocate specific–remunerationtoanyofitsmembersinordertorewardspecificservicesotherthanparticipationintheBoard’sroutinework;themembersrepresentingemployeesontheSupervisoryBoard–continue to receive remuneration under their permanentemployment contract. It is specified that the member(s)representing employees on the Supervisory Board will notreceiveanyremuneration inrelationtotheirtermsofofficeasmemberoftheBoardofDirectors.

2/REMUNERATIONPOLICYFORCORPORATEOFFICERSOFTHECOMPANYWITHAMANAGEMENTBOARDANDASUPERVISORYBOARD

Youareaskedtoapprove:theremunerationpolicy fortheChairmanandmembersofthe–ManagementBoard(9thresolution),irrespectiveoftheoutcomeofthevoteonthe11th resolutionrelatingtothechangetothecompany’s administration and management form by adoptingthe formof aBoardofDirectors. This policywill only apply totheperiodfrom1January2021until1June2021intheeventofapproval of the 11th resolution. For this period, the qualitativecriteria relating to the variable remuneration for 2021 of theChairmanandmembersoftheManagementBoardhaschangedinrelationtothepolicyapprovedatthe2020GeneralMeeting,andforthisreasonitisnecessaryforyoutovoteonthispolicy,evenintheeventofapprovalofthe11thresolution;theremunerationpolicy fortheChairmanandthemembersof–theSupervisoryBoard(33rdresolution)intheeventofrejectionofthe11thresolution.

its competitiveness over the medium and long term and theachievementofsustainableandprofitablegrowth.

Upon proposal of the Remuneration Committee and taking intoaccount the recommendations of the Middlenext Code, theSupervisoryBoardhasestablishedaremunerationpolicyforeachof the company’s corporate officers that is in line with itscorporateinterest,contributestoitssustainabilityandconformstoitsbusiness strategyasdescribed in thechapter “PresentationoftheGroup”oftheAnnualFinancialReport.Inordertodothis,theSupervisoryBoardhassettheremunerationpolicyforitsexecutivecorporateofficersinrelationtothesecomponents,inparticularbylaying down the criteria for their variable remuneration and thecriteriafortheallocationoffreeshares.Thesecriteriaaretailoredto the company’s strategy and environment in order to promote

To date, the Supervisory Board determines, reviews andimplements the remuneration policy for each of the corporateofficersontherecommendationoftheRemunerationCommittee.ItisspecifiedthatthemembersoftheManagementBoarddidnotattend the deliberations of the Supervisory Board on thesematters.No remuneration component, of any kind whatsoever, may bedetermined, allocated or paid by the company, nor anycommitmentmadebythecompany,ifitdoesnotcomplywiththeapprovedremunerationpolicyor, ifnopolicyis inplace,withtheexistingremunerationorpracticeswithinthecompany.However,under exceptional circumstances theBoardmaydepart from theremuneration policy, if such departure is temporary, is in thecompany’s interest and is necessary to ensure the company’scontinued existence or viability, only for the followingremuneration components: annual variable remuneration,exceptional remuneration and allocation of free shares. TheSupervisory Board will rule on the recommendations of theRemunerationCommitteeandwillverifywhetherthisdepartureisin linewith the company’s interests andnecessary toensure thecompany’scontinuedexistenceorviability.Thisinformationwillbebrought to the attention of shareholders in the next report oncorporategovernance.As part of the decision-making process used to determine andreview the remuneration policy, the terms and conditions ofremunerationandemploymentofthecompany’semployeesweretaken into account by the Remuneration Committee and theSupervisory Board, in particular the information referred to inparagraph6,sectionIofArticleL.22-10-9(fairnessratios).In theeventof a change in governance, the remunerationpolicywillbeappliedtothecompany’snewcorporateofficers,withthenecessaryadjustmentswhereapplicable.The Supervisory Board, acting on a proposal from theRemunerationCommittee,has taken the followingprinciples intoaccount, in accordance with recommendation R13 of theMiddlenextCodeonCorporateGovernanceofSeptember2016:

completeness: determination of remuneration received by–executive corporate officers must be complete: fixedcomponents, variable components (bonus), stock options, freeshares, attendance fees, pension terms and special benefitsmustbetakenintoaccountintheoveralllevelofassessmentofremuneration;balance between the elements of the remuneration: each–remuneration component must be substantiated andcorrespondtothecompany’sgeneralinterest;benchmark: the remuneration must be assessed, insofar as–possible, within the context of a business sector and thebenchmark market, and be proportionate to the company’ssituation,whilepayingdueattentiontoitsinflationaryeffects;consistency: executive corporate officers’ remuneration must–bedeterminedinamannerconsistentwiththatofotherofficersandemployeesinthecompany;clarityof the rules: the rulesmustbe simple and transparent;–theperformancecriteriausedtodeterminethevariablepartofremuneration,or,whereapplicable,theallocationofoptionsorfreeshares,mustbe linkedtothecompany’sperformanceandcorrespondto itsgoals,bedemanding,accountableandtothegreatest extent possible, sustainable. They should be detailedwithout however jeopardising the confidentiality that may bejustifiedforcertainelements;reasonableness:themethoddeterminingtheremunerationand–allocationofoptionsor freesharesmustbebalancedandtakeintoaccountat the same time thecompany’sgeneral interest,marketpracticesandofficerperformance;



transparency: shareholders’ annual information on the total–remunerationandbenefits receivedbyofficers is conducted inaccordancewithapplicableregulations.

REMUNERATIONPOLICYREGARDINGTHECHAIRMANANDMEMBER(S)OFTHEMANAGEMENTBOARD(9THRESOLUTION)

The remuneration policy regarding the Chairman andmember(s)oftheManagementBoard,setbytheSupervisoryBoardbasedonthe recommendations of the Remuneration Committee, is asfollows:

Fixedremuneration

Itisdeterminedinaccordancewithmarketpractice,andregularlybenchmarked by a recognised and reputable expert from a firmspecialisinginexecutiveremuneration.Itissetuponappointmentand changes only little every year during the termof office. It isreviewedandbenchmarkedagaineach time the termofoffice isrenewed.Howeverin2021,ayearinwhichtermsofofficewillberenewed, the fixed remunerationwill remainunchangedand theSupervisoryBoardhassuggestedthatthispositionbereviewedattheendofthe2021financialyearbasedonthecompany’sresultsfollowingtheCovidcrisis.Since2017,theremunerationpolicyhasincludedthepaymentofaPensionEquivalentPremiumintroducedformembersoftheManagementBoardinordertooffsetthelackof pension contributions on the upper portions of theirremuneration.


VariableremunerationisdeterminedbytheSupervisoryBoardontherecommendationoftheRemunerationCommittee. It isbasedontheachievementofobjectivesthattakeaccountofquantitativefinancialandqualitative,non-financialcriteria.Annual variable remuneration is capped at a maximum of theannualbasicfixedremuneration.

For the Chairman of the Management Board, this cap is amaximumof99%ofbasicfixedremuneration(BFR),i.e.84%ofthequantitative variable on financial criteria, and 15% of thequalitativevariableonnon-financialcriteria.Thecapiscalculatedasfollows:

the quantitative component, ranging from 0% to 120% and–basedonfinancialcriteria,appliestothetargetbonusof70%oftheBFR;thequalitativecomponent, rangingfrom0%to15%andbased–onnon-financialcriteria,applies to theBFR.Thiscomponent isweighted by a coefficient of 0 to 1 representing theRemuneration Committee’s assessment of the personal andmanagerial involvement of the Management Board memberconcerned.

Annual variable remuneration is therefore cappedatamaximumof99%oftheBFR:maximum annual variable remuneration =(BFRX 70%X 120%)+(BFRX15%X1)

For the othermembers of theManagement Board, this cap is amaximumof75%oftheBFR, i.e.60%ofthequantitativevariablebased on financial criteria, and 15% of the qualitative variablebasedonnon-financialcriteria.Thecapiscalculatedasfollows:

the quantitative component, ranging from 0% to 120% and–basedonfinancialcriteria,appliestothetargetbonusof50%oftheBFR;thequalitativecomponent, rangingfrom0%to15%andbased–onnon-financialcriteria,applies to theBFR.Thiscomponent isweighted by a coefficient of 0 to 1 representing theRemuneration Committee’s assessment of the personal andmanagerial involvement of the Management Board memberconcerned.

Annual variable remuneration is therefore cappedatamaximumof75%oftheBFR:maximum annual variable remuneration =(BFRX 50%X 120%)+(BFRX15%X1)

Thecriteriafordeterminingannualvariableremunerationandthemethodsforassessingthesecriteriaareasfollows:

for 2021, the quantitative criteria based on financial items–(“financial”criteria)areprofitgrowth,measuredbytheaveragegrowth in COR (Current Operating Result) over two years; thegrowthinprofitabilityofcapitalused,measuredbytheaveragelevelofROCE(ReturnOnCapitalEmployed)overtwoyears;andlastly,businessdevelopment,measuredbysalesgrowthandbyits differential with the sales growth in relation to a range ofbenchmarks consisting of eight companies deemed to becomparable.Theexpected levelofachievement for thequantitativecriteriahas been predefined by the Supervisory Board further to aproposal by the Remuneration Committee but is not disclosedforreasonsofconfidentiality;the qualitative, non-financial criteria are predefined by the–Supervisory Board further to a proposal by the RemunerationCommittee. For 2021, they include a criterion related to thecompletion of the Group’s transformation and linked, as lastyear,totheroll-outofthe“So!One”ERP,acriterionrelatedto“Cost Leadership” and linked to raw materials and electroniccomponents,acriterionrelatedtothe“Lean”projectandlinkedtothemappingoflegalentities,andlastlyacriterionrelatedtothe “Leadership Framework" linked to the roll-out of thecorporateculture.Thesenon-financialcriteriaareweightedbyacoefficient representing the Remuneration Committee’sassessmentofthepersonalandmanagerial involvementoftheManagementBoardmember concerned. Theexpected levelofachievementforthequalitativecriteriahasbeenpredefinedbythe Supervisory Board further to a proposal by theRemuneration Committee but is not disclosed for reasons ofconfidentiality.

For2021,thefinancialandnon-financialcriteriawillapplytocurrentmembersoftheManagementBoardasfollows:


JeanGuillaumeDESPATURE,ChairmanoftheManagementBoard


Group'stransformationprogramme–"CostLeadership"–"LeadershipFramework"andcorporate–culture




PierreRIBEIRO,MemberoftheManagementBoardandChiefFinancialOfficer


Group'stransformationprogramme–"CostLeadership"–"Lean"project–

These variable remuneration criteria contribute to meeting theobjectivesoftheremunerationpolicysincetheyareinlinewiththecompany’s corporate interest, contribute to its sustainability andarealignedwithitsbusinessstrategy.Todeterminetheextenttowhichthefinancialperformancecriteriaprovided for the calculation of variable compensation have beenmet, the Supervisory Board notably relies on the consolidatedfinancialstatementsauditedbytheStatutoryAuditors.


The Supervisory Board may decide, further to a proposal of theRemunerationCommitteeandunderveryspecialcircumstances,tograntexceptionalremunerationtoManagementBoardmembersortheChairman.Suchapaymentmaynotablybemadeintheeventofcompletionofamajortransactionforthecompanyorofexceptionalover-achievement that is not taken into account in the criteriadeterminingthevariableremunerationforthefinancialyear.The Supervisory Boardmay also decide, following the proposal oftheRemunerationCommittee,tograntexceptionalremunerationtoManagement Board members or the Chairman, in the event ofeconomic, political or social events, in response to which thecompany’s governance is required to take exceptional action topreservethecompany’sinterests.Ineverycase,theamountofexceptionalremunerationthusdecidedmay not exceed a maximum of 100% of the fixed annualremuneration.TheSupervisoryBoardmayalsodecide,ontherecommendationoftheRemunerationCommittee,tograntexceptionalremunerationintheformofanintroductorybonusfornewcorporateofficersintheeventofachangeingovernance.Theamountofexceptionalremunerationagreedinsuchacasemaynotexceedamaximumof300%oftheannualfixedremuneration.This introductory bonus will be conditional on a period ofemploymentwiththecompanyofatleast18monthsfollowingthedate of arrival and must be returned in the event of departurebefore 18months, irrespective of whether this departure isinstigatedbythecorporateofficerorthecompany.

Thepayment of variable, andpossibly exceptional, remunerationelementsallocatedinrelationtofinancialyearNtoeachmemberoftheManagementBoardissubjecttoapprovalinyearN+1bytheOrdinary GeneralMeeting of the remuneration elements paid inyearNorallocatedtotherelevantmemberinrelationtofinancialyearN.


ThemembersoftheManagementBoard,aswellastheChairman,may be the beneficiaries of allocations of free shares, subject tooneormoreperformance conditions,under the sameconditionsand subject to the same performance criteria as for allocationsgrantedtotheGroup’sexecutivesandseniorexecutives.

The performance criteria used are usually based on the level ofCurrent Operating Result and the development of Sales Growth.Otherperformance-basedcriteriamayalsobetakenintoaccount,basedinparticularoncorporatesocialresponsibility.Performance-related conditions are assessed over a periodidenticaltothatusedfortheplan’svestingperiod.Except under specific circumstances, these free share allocationsaregrantedonanannualbasisandarelimitedoninitialallocationto an allocated amount that corresponds to the book valuecalculated at fair value and which may not exceed 150% of theannualfixedremuneration.In theeventof a change in the compositionof theManagementBoard,theSupervisoryBoardmayauthoriseaspecificallocationintheformofan introductorybonus infavourofanewmemberofthe Management Board. In such a case, the amount granted,correspondingtothebookvaluecalculatedatfairvalue,maynotexceed300%oftheannualfixedremuneration.Thevestingperiodofthisplanmustbeaminimumoftwoyears.In order to ascertain to what extent the performance-basedcriteriasetoutinrelationtotheallocationofsharesfreeofchargehave been fulfilled, the Supervisory Board has set the followingmethods of assessment: the financial performance criteria arebasedonindicatorsthatarereviewedbytheStatutoryAuditorsaspartoftheirannualauditofthefinancialstatements.Inaddition,theGroup’sInternalAuditDepartmentisentrustedbytheManagementBoardwithanaudit assignment tovalidate thedata taken into account for the calculation of performanceconditions.The vesting and, where applicable, retention periods applicableaftervestingaredefinedbytheManagementBoardatthetimeofallocation and comply with the authorisation of the GeneralMeeting,i.e:


Moreover, at itsmeeting of 13May 2009, the Supervisory BoardsetthenumberofsharesthateverymemberoftheManagementBoardisrequiredtoretaininregisteredformuntiltheterminationoftheirtermofoffice:resultingineverymemberbeingrequiredtoretain 25% of the total shares allocated free of charge, thispercentagebeingreducedto20%attheendoffouryearsfromtheallocation, then successively to 15% at the end of six years fromtheallocation,to10%attheendofeightyearsfromtheallocationandto5%untiltheterminationoftheirtermsofoffice.Thesefreeshareallocationcriteriacontributetotheobjectivesoftheremunerationpolicysincetheyareinlinewiththecompany’scorporate interest, they contribute to its sustainability and theyarealignedwithitsbusinessstrategy.



Commitments

It should be noted that members of the Management Boardbenefit fromanemploymentcontractconcludedwithSomfySA’ssubsidiariespriortotheirappointmenttotheBoard.Ithasbecomenecessary to the company that, in order to attract and retaintalent, members of the Management Board must be able tocontinue to enjoy the protection guaranteed by an employmentcontract.Asaresult,thepermanentemploymentcontractsofthemembers of the Management Board that pre-dated theirrespective termsofofficehavebeenmaintained.Asa guide, thenotice period in the event of termination of the contract is sixmonths.

Severancepay

The Chairman and members of the Management Board do notbenefitfromanyundertakingofthiskindinrespectoftheirtermsofoffice.Intheeventofterminationoftheemploymentcontract,thelegaland/orcontractualprovisionswillapply.In theeventof a change in the compositionof theManagementBoard,theSupervisoryBoardmaydecidetograntanewmemberoftheManagementBoardseverancepaynotexceedingtwoyears’fixed and variable compensation, subject to a minimum of twoyearsinofficeandtothesamefinancialandnon-financialcriteriaasthoseusedtodeterminetheannualvariableremuneration.Thisseverance pay will be paid in full if the variable rate for thefinancialyearpreceding thedeparture representsat least60%ofthetargetbonus.Belowarateof60%, theseverancepaywillbereducedproportionally.

Pension

Members of the Management Board are beneficiaries of themandatory collective pension schemes applicable to executivesandseniorexecutivesofGroupcompanies.FortheChairmanoftheManagementBoardwhoisnotterritoriallyeligible for French pension plans, the applicable scheme is themandatory group scheme applicable to senior executives forcompaniesbasedintheSwissConfederation.There is no pension scheme with defined benefits covered byArticleL.137-11 of the Social Security Code (supplementarypensionplan), forthebenefitofManagementBoardmembersortheChairman.Like Group executives, the members of the Management Boardbenefit,whentheyretire,fromaretirementbonus(IndemnitédeFindeCarrière, or IFC) asprovided forby theNationalCollectiveBargaining Agreement for Executives and Engineers in theMetalwork Industry (IDCC 650). This is themandatory scheme inforcewithinthecompany.

Providentfund

The members of the Management Board and the Chairman arebeneficiaries of the group provident fund scheme (death &disability insurance) which applies to the Group’s seniorexecutives.Unless they justify personal insurance coverage elsewhere, theyarealsoaffiliatedtothe“MutualHealthInsurance”schemewhichismandatoryforGroupemployees.

Non-competeclause

There is no such commitment concerning current ManagementBoardmembersortheChairman.

In theeventof a change in the compositionof theManagementBoard, the Supervisory Board may decide to grant anon-competitionindemnitytoanewmemberforaperiodofoneyear,whichmayberenewableonceandapplicabletocompaniesinvolved in a competing business. The Supervisory Board willdecide,afterthememberoftheManagementBoardhasceasedtoholdoffice,whetherornottoapplythisnon-competeclause,fromwhichtheoutgoingmembermaybeexempted.Itspaymentwill,inanycase,bewaivedintheeventofretirement.

Benefitsofanykind

Management Boardmembers and the Chairman each have theirowncompanycarwhichtheymayuseprivately.

REMUNERATIONPOLICYFORTHECHAIRMANANDTHEMEMBERSOFTHESUPERVISORYBOARD(33rdRESOLUTION)

YouareaskedtovoteonthepolicyfortheChairmanandmembersof the Supervisory Board in the event of rejection of the 11th

resolution.

The remuneration policy for the Chairman and members of theSupervisory Board, set by the Supervisory Board based on therecommendationsoftheRemunerationCommittee,isasfollows:

the General Meeting allocates to the members of the–SupervisoryBoardafixedannualsumasremunerationfortheiractivity;the Supervisory Board sets the amount allocated to each–member, except for the member representing employees,according to their actual attendance at meetings of theSupervisory Board and the Audit and RemunerationCommittees,withtheoptionofprovidingforadifferentrule,ifnecessary, for members with an employment contract. Theremuneration allocated includes a fixed part that remuneratesresponsibilityandonepartthatremuneratesattendance;inadditiontohisremunerationforhisdutiesasmemberofthe–Supervisory Board, the Chairman of the Supervisory Boardreceives specific remuneration forhis duties asChairman. Thisremuneration is fixed and changes upon each extension tohis/her appointment, orwhen the Supervisory Board observesthat there has been a permanent change to the Chairman’sworkload;the Supervisory Board reserves the right to allocate specific–remunerationtooneofitsmembersinordertorewardspecificservices other than participation in the Supervisory Board’sroutinework;themembersrepresentingemployeesontheSupervisoryBoard–continue to receive remuneration under their permanentemployment contract. It is specified that the member(s)representing employees on the Supervisory Board do notreceiveanyremunerationinrelationtotheirtermsofofficeasaSupervisoryBoardmember.

INFORMATIONONTHETERMSOFOFFICEANDEMPLOYMENTAND/ORSERVICECONTRACTSOFCORPORATEOFFICERSWITHTHECOMPANY

ThetermsofofficeofthemembersoftheManagementBoardandthemembersoftheSupervisoryBoardaresetoutonpages66and67ofthereportoncorporategovernanceinchapter4ofthe2020AnnualFinancialReport.As of the date of preparation of this report, no member of theManagementBoardorSupervisoryBoardisboundtothecompanyby a contract of employment or a contract for the provision ofservices.



It should be noted that members of the Management Boardbenefit fromanemploymentcontractconcludedwithSomfySA’ssubsidiariespriortotheirappointmenttotheBoard.In2020,theSupervisoryBoardappointedamemberrepresentingemployeeswhoisboundbyapermanentcontractofemploymenttoSomfyActivitésSA,asubsidiaryofSomfySA.

INFORMATIONREFERREDTOINPARAGRAPHIOFARTICLEL.22-10-9OFTHECOMMERCIALCODEFOREACHCORPORATEOFFICEROFTHECOMPANY(5THRESOLUTIONOFTHEGENERALMEETINGOF2JUNE2021)—It is specified that the total remuneration of each executivecorporateofficercomplieswiththeremunerationpolicyapprovedby the General Meeting of 24June 2020 in its 9thand10thresolutions.

JEANGUILLAUMEDESPATURECHAIRMANOFTHEMANAGEMENTBOARD

In accordance with the remuneration policy approved by theGeneralMeetingof24June2020,remunerationcomprisesafixedportion, a variable portion, long-term remuneration and otherbenefits detailed below. The fixed portion consists of the basicfixedremunerationandalsoincludesthepaymentofaPER(PrimeÉquivalent Retraite - Pension Equivalent Premium) premium infavourofManagementBoardmembers, introducedfollowingtheremoval of the previous “Article39” supplementary pensionscheme.VariableremunerationisdeterminedbytheSupervisoryBoardontherecommendationoftheRemunerationCommittee. It isbasedontheachievementofobjectivesthattakeaccountofquantitativefinancialandqualitativecriteria.For the part based on quantitative criteria (referred to as“financial” criteria), the criteria used in 2020 are profit growth,measuredbytheaveragegrowthinCurrentOperatingResultovertwoyears;thegrowthinprofitabilityofcapitalused,measuredbytheaveragelevelofROCE(ReturnOnCapitalEmployed)overtwoyears; and lastly, business development, measured by SalesGrowthandbyitsdifferentialwiththeSalesGrowthofarangeofbenchmarks consisting of eight companies deemed to becomparable.Forthepartbasedonqualitativecriteria, thecriteriaselectedfor2020 (so-called “non-financial” criteria) relate to the company’sstrategy and include a CSR criterion aimed at stepping up theeco-design of products, a criterion related to the roll-out of the“So!One”ERPproject,andlastly,acriterionrelatedtotheGroup’smulti-brandstrategy.Thesenon-financialcriteriaareweightedbya coefficient representing the Remuneration Committee’sassessment of the personal and managerial involvement of theManagement Board member concerned. For confidentialityreasons the expected levels of achievement of quantitativecriteria,aswellasthequalitativecriteria,whicharepredeterminedby the Supervisory Board on proposal by the RemunerationCommittee,arenotpubliclydisclosed.Benefitsinkindconsistoftheuseofacompanycar.Anallocationof1,800performance-basedshareswasagreeduponby the Management Board on 31August 2020 in respect oflong-term remuneration for the benefit of Jean GuillaumeDespature.Detailsareprovidedintables3and4below.

plan of the company DSG Coordination CenterSA, which appliesequally to senior executives and employee directors. This is thesecond mandatory pillar for companies based in the SwissConfederation. The company’s commitment is limited to theamountofcontributionspaidduringthefinancialyear.

In respect of his employment contract, which pre-dates hisappointment to the Management Board, Jean GuillaumeDespatureisalsoabeneficiaryofthedefinedcontributionpension

Details of total remuneration allocated and paid during thefinancialyearjustendedareincludedinthesummarytable(page86).

PIERRERIBEIROMEMBEROFTHEMANAGEMENTBOARDANDCHIEFFINANCIALOFFICER

In accordance with the remuneration policy approved by theGeneralMeetingof24June2020,remunerationcomprisesafixedportion, a variable portion, long-term remuneration and otherbenefits detailed below. The fixed portion consists of the basicfixedremunerationandalsoincludesthepaymentofaPER(PrimeÉquivalent Retraite - Pension Equivalent Premium) premium infavourofManagementBoardmembers, introducedfollowingtheremoval of the previous “Article39” supplementary pensionscheme.VariableremunerationisdeterminedbytheSupervisoryBoardontherecommendationoftheRemunerationCommittee. It isbasedontheachievementofobjectivesthattakeaccountofquantitativefinancialandqualitativecriteria.For the part based on quantitative criteria (referred to as“financial” criteria), the criteria used in 2020 are profit growth,measuredbytheaveragegrowthinCurrentOperatingResultovertwoyears;thegrowthinprofitabilityofcapitalused,measuredbytheaveragelevelofROCE(ReturnOnCapitalEmployed)overtwoyears; and lastly, business development, measured by SalesGrowthandbyitsdifferentialwiththeSalesGrowthofarangeofbenchmarks consisting of eight companies deemed to becomparable.Forthepartbasedonqualitativecriteria, thecriteriaselectedfor2020 (so-called “non-financial” criteria) relate to the company’sstrategy and include a CSR criterion aimed at stepping up theeco-design of products, a criterion related to the roll-out of the“So! One” ERP project, and lastly, a criterion related to the“Somfy-BFTconvergence”project.Thesenon-financialcriteriaareweighted by a coefficient representing the RemunerationCommittee’s assessment of the personal and managerialinvolvement of theManagement Board member concerned. Forconfidentiality reasons the expected level of achievement ofquantitative criteria, aswell as the qualitative criteria,which arepredetermined by the Supervisory Board on proposal by theRemunerationCommittee,arenotpubliclydisclosed.Benefitsinkindconsistoftheuseofacompanycar.Anallocationof1,800performance-basedshareswasagreeduponby the Management Board on 31August 2020 in respect oflong-term remuneration for the benefit of Pierre Ribeiro. Detailsareprovidedintables3and4below.Underhisemploymentcontract,whichpre-dateshisappointmentto theManagementBoard, PierreRibeiro is eligible for incentivebonus, profit-sharing and employer’s contributions from thecompanyCMC.HeisalsoabeneficiaryofCMC’sdefinedcontributionpensionplan(Article83),whichappliestobothseniorexecutivesandemployeedirectors.Thecompany’scommitmentislimitedtotheamountofcontributionspaidduringthefinancialyear.Details of total remuneration allocated and paid during thefinancialyearjustendedareincludedinthesummarytable(page87).



SUMMARYTABLEOFTOTALREMUNERATIONPAIDIN2020ORALLOCATEDINRESPECTOF2020TOMEMBERSOFTHEMANAGEMENTBOARDANDTHESUPERVISORYBOARD(includingremunerationpaidbythecompanyandcompaniesunderitscontrol)

Table1:Summaryofremunerationandallocatedoptionsandshares

JeanGuillaumeDESPATURE,ChairmanoftheManagementBoard Gross,€

Allocatedforthe2020

financialyear

Allocatedforthe2019

financialyear

Allocatedforthe2018

financialyear

Remunerationallocatedforthefinancialyear(asdetailedintable2)

Termofoffice 1,014,284 996,816 892,880

Employmentcontract 342,071 336,094 301,312

ValueofoptionsgrantedduringthefinancialyearTermofoffice

nil nil nilEmploymentcontract

Valueofperformancebasedsharesgrantedduringthefinancialyear(asdetailedintable3)

Termofoffice 151,245 225,348 nil

Employmentcontract nil nil nil

Valueofotherlong-termremunerationplansTermofoffice


TOTAL 1,507,600 1,558,258 1,194,192

PierreRIBEIRO,MemberoftheManagementBoardandChiefFinancialOfficer Gross,€

Allocatedforthe2020

financialyear

Allocatedforthe2019

financialyear

Allocatedforthe2018

financialyear

Remunerationallocatedforthefinancialyear(asdetailedintable2)

Termofoffice 146,562 147,775 140,789

Employmentcontract 660,190 634,678 596,478

ValueofoptionsgrantedduringthefinancialyearTermofoffice


Valueofperformancebasedsharesgrantedduringthefinancialyear(asdetailedintable3)

Termofoffice 151,245 225,348 nil

Employmentcontract nil nil nil

Valueofotherlong-termremunerationplansTermofoffice


TOTAL 957,997 1,007,801 737,267



Table2:Overviewoftheremunerationofeachexecutivecorporateofficer

JeanGuillaumeDESPATURE,ChairmanoftheManagementBoard Gross,€

2020 2019 2018

Allocatedforthe

financialyear

Paidduringthe

financialyear

Allocatedforthe

financialyear

Paidduringthe

financialyear

Allocatedforthe

financialyear

Paidduringthe

financialyear

Basicfixedremuneration(BFR)

Termofoffice 477,000 477,000 459,000 459,000 450,000 450,000

Employmentcontract 159,000 159,000 153,000 153,000 150,000 150,000

Fixedremuneration-PensionEquivalentPremium

Termofoffice 88,784 88,784 83,316 83,316 79,880 79,880


Annualvariableremuneration***

Termofoffice 448,500 454,500 454,500 363,000 363,000 247,500


ExceptionalremunerationTermofoffice – – – – – –

Employmentcontract – – – – – –

Incentivebonus,profit-sharing,employer’scontribution

Termofoffice – – – – – –

Employmentcontract – – – – – –

BenefitsinkindTermofoffice – – – – – –


TOTAL 1,356,355 1,364,355 1,332,910 1,210,910 1,194,192 1,040,192

*Relativeproportionofvariableremunerationtofixedremuneration:

Termofoffice 94.0% – 99.0% – 80.7% –

Employmentcontract 94.0% – 99.0% – 80.7% –

ForJeanGuillaumeDespature,theperformancecriteriawereappliedasfollows:**Annualvariableremunerationiscappedatamaximumoftheannualfixedremuneration.Thiscaprepresentsamaximumof99%ofthebasicfixedremuneration,i.e.84%forthequantitativevariableremunerationbasedonfinancialcriteria,and15%forthequalitativevariableremunerationbasedonnon-financialcriteria,asdescribedintheparagraph“RemunerationpolicyregardingtheChairmanandmember(s)oftheManagementBoard-Annualvariableremuneration”onpage57andsubsequentofthe2019AnnualFinancialReport.

targetbonusis70%ofthebasicfixedremuneration.TheForthe2018financialyear,theROCandROCEquantitativecriteriawere73.7%,thegrowthmultiplierwas1.36,resultinginaquantitativebonusrateof100.4%ofthetargetbonus.Thequantitativevariableportionbasedonfinancialcriteriawastherefore70.3%ofthebasicfixedremuneration.Thequalitativevariableportionbasedonnon-financialcriteriawas10.3%ofthebasicfixedremuneration.Thetotalbonusiscalculatedasfollows:totalbonus=basicfixedremunerationX%quantitativebonus+basicfixedremunerationX%qualitativebonus,i.e.(€600,000x70%x100.4%)+(€600,000x10.3%)=€483,480,roundedupto€484,000,i.e.80.7%oftheannualbasicfixedremuneration.Forthe2019financialyear,theROCandROCEquantitativecriteriawere115.87%,thegrowthmultiplierwas1.29,resultinginaquantitativebonusrateof149.6%,cappedat120%ofthetargetbonus.Thequantitativevariableportionbasedonfinancialcriteriawastherefore84%ofthebasicfixedremuneration.Thequalitativevariableportionbasedonnon-financialcriteriawas15%ofthebasicfixedremuneration.Thetotalbonusiscalculatedasfollows:totalbonus=basicfixedremunerationX%quantitativebonus+basicfixedremunerationX%qualitativebonus,i.e.(€612,000x70%x120%)+(€612,000x15%)=€605,880roundedupto€606,000,i.e.99%oftheannualbasicfixedremuneration,whichistheauthorisedmaximumandwhichreflectsthe2019financialyear’shealthyperformance.Forthe2020financialyear,theROCandROCEquantitativecriteriawere120%,thegrowthmultiplierwas1.5,resultinginaquantitativebonusrateof180%,cappedat120%ofthetargetbonus.Thequantitativevariableportionbasedonfinancialcriteriawastherefore84%ofthebasicfixedremuneration.Thequalitativevariableportionbasedonnon-financialcriteriawas10%ofthebasicfixedremuneration.

totalbonusiscalculatedasfollows:Thetotalbonus=basicfixedremunerationX%quantitativebonus+basicfixedremunerationX%qualitativebonus,i.e.(€636,000x70%x120%)+(€636,000x10%)=€598,000,i.e.94%oftheannualbasicfixedremuneration.



PierreRIBEIRO,MemberoftheManagementBoardandChiefFinancialOfficer Gross,€

2020 2019 2018

Allocatedforthe

financialyear

Paidduringthe

financialyear

Allocatedforthe

financialyear

Paidduringthe

financialyear

Allocatedforthe

financialyear

Paidduringthe

financialyear

Basicfixedremuneration(BFR)

Termofoffice 76,560 76,560 76,560 76,560 75,000 75,000


Fixedremuneration-PensionEquivalentPremium

Termofoffice 16,302 16,302 15,915 15,915 15,289 15,289


Annualvariableremuneration***

Termofoffice 53,700 55,300 55,300 45,500 45,500 31,000


ExceptionalremunerationTermofoffice – – – 5,000 5,000 –

Employmentcontract – – – 20,000 20,000 –

Incentivebonus,profit-sharing,employer’scontribution

Termofoffice – – – – – –


BenefitsinkindTermofoffice – – – – – –


TOTAL 806,752 802,354 782,453 748,375 737,267 666,580

Relativeproportionofvariableremunerationtofixedremuneration:*

Termofoffice 70.1% – 72.2% – 60.7% –

Employmentcontract 70.2% – 75.9% – 60.5% –

**ForPierreRibeiro,theperformancecriteriawereappliedasfollows:Annualvariableremunerationiscappedatamaximumoftheannualbasicfixedremuneration.Thiscaprepresentsamaximumof75%ofthebasicfixedremuneration,i.e.60%forthequantitativevariableremunerationbasedonfinancialcriteria,and15%forthequalitativevariableremunerationbasedonnon-financialcriteria,asdescribedintheparagraph“RemunerationpolicyregardingtheChairmanandmember(s)oftheManagementBoard-Annualvariableremuneration”onpage57andsubsequentofthe2019AnnualFinancialReport.Thetargetbonusis50%ofthebasicfixedremuneration.Forthe2018financialyear,theROCandROCEquantitativecriteriawere73.7%,thegrowthmultiplierwas1.36,resultinginaquantitativebonusrateof100.4%ofthetargetbonus.Thequantitativevariableportionbasedonfinancialcriteriawastherefore50.2%ofthebasicfixedremuneration.Thequalitativevariableportionbasedonnon-financialcriteriawas10.3%ofthebasicfixedremuneration.Thetotalbonusiscalculatedasfollows:totalbonus=basicfixedremunerationX%quantitativebonus+basicfixedremunerationX%qualitativebonus,i.e.(€360,000x50%x100.4%)+(€360,000x10.3%)=€217,800,roundedupto€218,000,i.e.60.6%oftheannualbasicfixedremuneration.Theexceptionalremunerationpaidin2019wasallocatedinrespectofthe2018financialyearasaresultoftheparticularlyimportantworkaccomplishedoverthecourseofthatyearinrelationtothestructuringofsubsidiariesandshareholdings.Forthe2019financialyear,theROCandROCEquantitativecriteriawere115.87%,thegrowthmultiplierwas1.29,resultinginaquantitativebonusrateof149.6%,cappedat120%ofthetargetbonus.Thequantitativevariableportionbasedonfinancialcriteriawastherefore60%ofthebasicfixedremuneration.Thequalitativevariableportionbasedonnon-financialcriteriawas15%ofthebasicfixedremuneration.Thetotalbonusiscalculatedasfollows:totalbonus=basicfixedremunerationX%quantitativebonus+basicfixedremunerationX%qualitativebonus,i.e.(€367,200x50%x120%)+(€367,200x15%)=€275,400roundedupto€276,000,i.e.75%oftheannualbasicfixedremuneration,whichistheauthorisedmaximumandwhichreflectsthe2019financialyear’shealthyperformance.Forthe2020financialyear,theROCandROCEquantitativecriteriawere120%,thegrowthmultiplierwas1.5,resultinginaquantitativebonusrateof180%,cappedat120%ofthetargetbonus.Thequantitativevariableportionbasedonfinancialcriteriawastherefore60%ofthebasicfixedremuneration.Thequalitativevariableportionbasedonnon-financialcriteriawas10%ofthebasicfixedremuneration.Thetotalbonusiscalculatedasfollows:totalbonus=basicfixedremunerationX%quantitativebonus+basicfixedremunerationX%qualitativebonus,i.e.(€382,000x50%x120%)+(€382,000x10%)=€268,000,i.e.70%oftheannualbasicfixedremuneration.

These remuneration components contribute to the objectives of the remuneration policy since they are in line with the company’scorporateinterest,theycontributetoitssustainabilityandtheyarealignedwithitsbusinessstrategy.



Performancesharesallocatedorvestedduringthefinancialyear

Table3:PerformancesharesallocatedfreeofchargetoeachmemberoftheManagementBoard

PerformancesharesallocatedbytheShareholders’GeneralMeetingduringthefinancialyeartoeachcorporateofficerbytheissuerandbyanyGroupentity

Plann°anddate

Numberofshares

allocatedduringthefinancial

year

Valueofsharesasperthemethodusedinthe

consolidatedfinancial

statements(IFRS2)

Allocationdate

Vestingdate

Performanceconditions

JeanGuillaumeDespature

2021FreePerformanceSharePlanof20May2019

3,576 €225,348 30/06/21 01/07/21

salesgrowthfor–theyearended31December2020changeincurrent–operatingresultfortheyearended31December2020%ofHome&Building–productssoldundertheSomfybrandandlabelled“ActforGreen”intheyearended31December2020

2022FreePerformanceSharePlanof

31August2020

1,800 €151,245 15/09/22 16/09/22

salesgrowthforthe–yearended31December2021changeincurrent–operatingresultfortheyearended31December2021developmentof–technologysolutionsenablingasignificantreductionintheGroup’scarbonfootprintat31December2021

PierreRibeiro

2021FreePerformanceSharePlanof20May2019

3,576 €225,348 30/06/21 01/07/21

salesgrowthforthe–yearended31December2020changeincurrent–operatingresultfortheyearended31December2020%ofHome&Building–productssoldundertheSomfybrandandlabelled“ActforGreen”intheyearended31December2020

2022FreePerformanceSharePlanof

31August2020

1,800 €151,245 15/09/22 16/09/22

salesgrowthforthe–yearended31December2021changeincurrent–operatingresultfortheyearended31December2021developmentof–technologysolutionsenablingasignificantreductionintheGroup’scarbonfootprintat31December2021



Table4:Performancesharesvestedorallocatedduringthefinancialyeartoeachexecutivecorporateofficer

Maincharacteristicsofthefreeshareallocationplans

Informationrelatingtothefinancialyearjustended

Atthestartoftheyear

Duringthefinancialyear

Atyear-end

Nameandtitleofthecorporateofficer

1Plann°

2Vestingperiod

3Allocationdate

4Vestingdate

5Endoftheretentionperiod

6Sharesgrantedatthestartoftheyear

7Sharesallocated

8Sharesvested

9Sharessubjecttoperfor-manceconditions

10Sharesallocatedbutnotvested

11Sharessubjecttoretentionperiod

FreeSharePlann°3

2years 16/06/17 01/07/19endoftermofoffice

7,320 – – – 5,564 439

JeanGuillaumeDespatureChairmanoftheManagementBoard

FreePerfor-manceSharePlan2021


3,576 – – 3,576 – –



– 1,800 – 1,800 – –

10,896 1,800 – 5,376 5,564 439

FreeSharePlann°3


7,320 – – – 5,564 439

PierreRibeiroMemberoftheManagementBoardandChiefFinancialOfficer



3,576 – – 3,576 – –



– 1,800 – 1,800 – –

10,896 1,800 – 5,376 5,564 439

Table5:Performancesharesvestedduringthefinancialyeartoeachexecutivecorporateofficer

Performancesharesvestedduringthefinancialyeartoeachexecutivecorporateofficer

Plann°anddate Numberofsharesvested*duringthefinancialyear

JeanGuillaumeDespature nil

PierreRibeiro nil

Subjecttotheretentionobligationmentionedintheremunerationpolicy(page82).*



Benefitsofexecutivecorporateofficers

Table6:Summarytableofexecutivecorporateofficers’benefits

Executivecorporateofficers

Employmentcontract Supplementarypensionscheme

Compensationorbenefitsdueorliabletobedueasaresult

oftheterminationorchangeoftermsofoffice

Compensationrelatingtoanon-compete

clause

yes no yes no yes no yes no

Name: JeanGuillaumeDESPATURE

P

Position: ChairmanoftheManagementBoard O O O

Startoftermofoffice: 17/05/17

Endoftermofoffice: 2021AGM

withanentityincludedintheGroup’sconsolidation

scope

Name: PierreRIBEIRO

P

Position:MemberoftheManagementBoardandChiefFinancialOfficer O O O

Startoftermofoffice: 17/05/17

Endoftermofoffice: 2021AGM

withanentityincludedintheGroup’sconsolidation

scope

Members of the Management Board benefit from an employment contract concluded with Somfy SA’s subsidiaries prior to theirappointment to the Board. It has become necessary to the company that, in order to attract and retain talent, members of theManagementBoardmustbeabletocontinuetoenjoytheprotectionguaranteedbyanemploymentcontract.Asaresult,theemploymentcontractsofthemembersoftheManagementBoardthatpre-datedtheirrespectivetermsofofficehavebeenmaintained.

CompensationorbenefitsdueorliabletobedueasaresultoftheterminationorchangeoftermsofofficeTheChairmanandmembersoftheManagementBoarddonotbenefitfromanyundertakingofthiskindinrespectoftheirtermsofoffice.Intheeventofterminationoftheemploymentcontract,thelegaland/orcontractualprovisionswillapply.

PensionMembersof theManagementBoardarebeneficiariesof themandatory collectivepension schemesapplicable toexecutivesand seniorexecutivesofGroupcompanies.For the Chairman of the Management Board who is not territorially eligible for French pension plans, the applicable scheme is themandatorygroupschemeapplicabletoseniorexecutivesforcompaniesbasedintheSwissConfederation.ThereisnopensionschemewithdefinedbenefitscoveredbyArticleL.137-11oftheSocialSecurityCode(supplementarypensionplan),forthebenefitofManagementBoardmembersortheChairman.LikeGroup executives, themembers and the Chairman of theManagement Board benefit,when they retire, from a retirement bonus(IndemnitédeFindeCarrière,orIFC)asprovidedforbytheNationalCollectiveBargainingAgreementforExecutivesandEngineersintheMetalwork Industry (IDCC 650). Given the age of the beneficiaries, such compensation is not likely to be paid before 2028 and theSupervisoryBoardhasnotdeemeditnecessarytosetaperformanceconditionatthisstage.

Non-competeclauseThereisnosuchcommitmentconcerningManagementBoardmembersortheChairman.



Table7:Remunerationreceivedbynon-executivecorporateofficers

MembersoftheSupervisoryBoard 2020financialyear 2019financialyear 2018financialyear

Gross,€

Allocatedforthefinancial

year

Paidduringthefinancial

year


year


year


year


year

MichelROLLIER

RemunerationforthetermofofficeasmemberoftheSupervisoryBoard 15,000 15,000 3,600 3,600 5,400 5,400

RemunerationforthetermofofficeasChairmanoftheSupervisoryBoard 100,000 100,000 100,000 100,000 90,625 90,625

PauleCELLARD


VictorDESPATURE


AnthonySTAHL

RemunerationforthetermofofficeasmemberoftheSupervisoryBoard 33,000 33,000 –* –* –* –*

FlorenceNOBLOT


SophieDESORMIÈRE


MarieBAVAREL-DESPATURE


BertrandPARMENTIER

RemunerationforthetermofofficeasmemberoftheSupervisoryBoard 25,750 25,750 – – – –

ArthurWATIN-AUGOUARD

Employeerepresentative –** –** – – – –

TOTAL 373,750 373,750 163,200 163,200 149,025 149,025

Didnotwishtoreceiveremunerationinrelationtohistermofoffice.*Thesalaryamountdueinrespectoftheemploymentcontractisnotdisclosedforreasonsofconfidentiality.**



Tables8:Fairnessratios

Pursuant to the provisions of sub-paragraph6° of paragraphI of ArticleL.22-10-9 of the Commercial Code, belowwe detail the ratiosbetween the level of remuneration of each of the executive corporate officers and, firstly, the average remuneration on a full-timeequivalent basis of the company’s employees other than the corporate officers, and secondly, themedian remuneration on a full-timeequivalentbasisofthecompany’semployeesotherthanthecorporateofficers.Withtheseprovisionslimitingthecomparisonsolelybasedon the scope of “employees of the company”, ratios are calculated by comparing the remuneration of corporate officers with that ofemployeesofSomfySA,whoselimitedworkforcenotablyincludesExecutiveCommitteemembers.Forcorporateofficers,asforSomfySAemployees,thetotalremunerationpaidduringthefinancialyearwasused.Itcomprises:

thefixedportion;–thevariableportionpaidduringfinancialyearNinrespectofN-1;–theexceptionalremunerationpaidduringfinancialyearN;–performancesharesgrantedinrespectoffinancialyearNandvaluedattheIFRSvalue;–employeesavings;–benefitsinkind(salaryportion).–

2020financialyear

ChairmanoftheManagement

Board

MemberoftheManagement

Board

ChairmanoftheSupervisory

Board

Remunerationasexecutivecorporateofficer – 1,515,600 953,599 115,000

Ratiotoaverageemployeesalary – 3.77 2.37 0.29

Ratiotomedianemployeesalary – 3.84 2.42 0.29

Annualchangeinexecutivecorporateofficer’sremuneration – 5.5% -2.1% 11.0%

Annualchangeinaveragesalaryofnon-corporateofficeremployees – -4.5% -4.5% -4.5%

Averagesalaryofnon-corporateofficeremployees 402,368 – – –

Mediansalaryofnon-corporateofficeremployees 394,282 – – –

Annualchangeincompanyperformance:consolidatednetprofit 30.5% – – –

Annualchangeincompanyperformance:consolidatedcurrentoperatingresult 27.3% – – –

2019financialyear


Board


Board


Board




Annualchangeinexecutivecorporateofficer’sremuneration – 38.1% 46.1% 7.9%

Annualchangeinaveragesalaryofnon-corporateofficeremployees – 4.1% 4.1% 4.1%







2018financialyear


Board


Board


Board




Annualchangeinexecutivecorporateofficer’sremuneration – -13.6% -33.0% 22.2%




Annualchangeincompanyperformance:consolidatednetprofit -11.0% – – –


2017financialyear


Board


Board


Board









Annualchangeincompanyperformance:consolidatedcurrentoperatingresult -5.2% – – –

2016financialyear


Board


Board


Board

Remunerationasexecutivecorporateofficer – 832,574 606,643 78,600







Annualchangeincompanyperformance:consolidatednetprofit -13.0% – – –




FIXED,VARIABLEANDEXCEPTIONALITEMSCOMPRISINGTOTALREMUNERATIONANDBENEFITSOFANYKINDPAIDORALLOCATEDDURINGTHEFINANCIALYEARJUSTENDEDTOTHECHAIRMANOFTHEMANAGEMENTBOARD,MEMBERSOFTHEMANAGEMENTBOARDANDTHECHAIRMANOFTHESUPERVISORYBOARD(6THTO8THRESOLUTIONSOFTHEGENERALMEETINGOF2JUNE2021)—The items of remunerationpaid or allocated during the 2020 financial year and presented hereafter are submitted for your approvalpursuanttoArticle22-10-34paragraph2oftheCommercialCode.

RESOLUTIONN°6:JEANGUILLAUMEDESPATURE,CHAIRMANOFTHEMANAGEMENTBOARD–AMOUNTSPAIDDURINGORALLOCATEDINRESPECTOFTHEFINANCIALYEARJUSTENDED

The total remunerationpaidduringorallocated in respectof thefinancialyearjustendedconsistsof:

thefixedremunerationallocatedinrespectof2020andpaidin–2020, comprising gross basic remuneration of €636,000(including €477,000 gross for the term of office and €159,000grossfortheemploymentcontract)andthePensionEquivalentPremiumamountingto€118,379gross(including€88,784grossfor the term of office and €29,595 gross for the employmentcontract), inaccordancewith the remunerationpolicyadoptedattheGeneralMeetingof24June2020;the variable remuneration allocated in respect of 2019 and–paid in 2020, as adopted at the General Meeting of 24June2020, amounting to €606,000 gross (including €454,500 grossfor the termofoffice and€151,500gross for theemploymentcontract);the variable remuneration allocated in respect of the 2020–financial year, totalling€598,000gross (including€448,500 forthe termofofficeand€149,500 for theemployment contract)and to be paid in 2021 following the General Meeting andsubject to its approval (see table2 above detailing theprocedure for determining the annual variable remuneration).Thequantitativeandqualitativecriteriausedtodeterminethisvariable remuneration are described in the paragraph“Informationreferredto inparagraphIofArticleL.225-37-3ofthe Commercial Code for each corporate officer of thecompany”onpage60ofthe2019AnnualFinancialReport;abenefitinkindgrantedin2020andrepresentedbytheuseof–acompanycarwithabookvalueof€3,976,inaccordancewiththe2020 remunerationpolicyadoptedat theGeneralMeetingof24June2020;the allocation free of charge of 1,800 performance shares–agreedbytheManagementBoardon31August2020aspartofthe“2022PerformanceShares”plan, for thebenefitofcertainsalaried employees of the company, certain of its corporateofficers,aswellascertainsalariedemployeesofitssubsidiaries(see table3 above detailing the performance-based conditionsrelatedtothisplan),inaccordancewiththeremunerationpolicyadoptedat theGeneralMeetingof 22May2019,with abookvalueunderIFRS2of€151,245.

It should also be noted that Jean Guillaume Despature benefitsfrom a defined contribution pension commitment (no amountsubjecttoex-postvote).

RESOLUTIONN°7:PIERRERIBEIRO,MEMBEROFTHEMANAGEMENTBOARDANDCHIEFFINANCIALOFFICER–AMOUNTSPAIDDURINGORALLOCATEDINRESPECTOFTHEFINANCIALYEARJUSTENDED

The total remunerationpaidduringorallocated in respectof thefinancialyearjustendedconsistsof:

thefixedremunerationallocatedinrespectof2020andpaidin–2020, comprising gross basic remuneration of €382,000(including €76,560 gross for the term of office and €305,440grossfortheemploymentcontract)andthePensionEquivalentPremiumamounting to €81,338 gross (including €16,302 grossfor the term of office and €65,036 gross for the employmentcontract), inaccordancewith the remunerationpolicyadoptedattheGeneralMeetingof24June2020;the variable remuneration allocated in respect of 2019 and–paid in 2020, as adopted at the General Meeting of 24June2020,amountingto€276,000gross(including€55,300grossforthe term of office and €220,700 gross for the employmentcontract);the variable remuneration allocated in respect of the 2020–financial year, totalling €268,000 gross (including €53,700 forthetermofofficeand€214,300fortheemploymentcontract),and to be paid in 2021 following the General Meeting andsubject to its approval (see table2 above detailing theprocedure for determining the annual variable remuneration).Thequantitativeandqualitativecriteriausedtodeterminethisvariable remuneration are described in the paragraph“Informationreferredto inparagraphIofArticleL.225-37-3ofthe Commercial Code for each corporate officer of thecompany”onpage61ofthe2019AnnualFinancialReport;abenefitinkindgrantedin2020andrepresentedbytheuseof–acompanycarwithabookvalueof€7,787,inaccordancewiththe2020 remunerationpolicyadoptedat theGeneralMeetingof24June2020;anemployeesavingsplanrelatedtotheemploymentcontract–(profit-sharing, incentive bonus, employer’s contribution)amountingto€67,628dueinrespectofthe2020financialyearandtobepaidin2021;the allocation free of charge of 1,800 performance shares–agreedbytheManagementBoardon31August2020aspartofthe“2022PerformanceShares”plan, for thebenefitofcertainsalaried employees of the company, certain of its corporateofficers,aswellascertainsalariedemployeesofitssubsidiaries(see table3 above detailing the performance-based conditionsrelatedtothisplan),inaccordancewiththeremunerationpolicyadoptedat theGeneralMeetingof 22May2019,with abookvalueunderIFRS2of€151,245.

ItshouldalsobenotedthatPierreRibeirobenefitsfromadefinedcontributionpension commitment (no amount subject toex-postvote).



RESOLUTIONN°8:MICHELROLLIER,CHAIRMANOFTHESUPERVISORYBOARD–AMOUNTSPAIDDURINGORALLOCATEDINRESPECTOFTHEFINANCIALYEARJUSTENDED

Remunerationforthe2020financialyearconsistsofremunerationof €100,000 gross paid in respect of his role as Chairman of theSupervisory Board and remuneration of €15,000 gross for hisparticipationinSpecialisedCommittees.

INFORMATIONONTHETERMSANDCONDITIONSFORTHERETENTIONOFSHARESALLOCATEDFREEOFCHARGETOEXECUTIVECORPORATEOFFICERS—At its meeting of 13May 2009, the Supervisory Board set thenumberofsharesthateachmemberoftheManagementBoardisrequiredtoretaininregisteredformuntiltheterminationoftheirtermofoffice:resultingineverymemberbeingrequiredtoretain25% of the total shares allocated to them free of charge, thispercentagebeingreducedto20%attheendoffouryearsfromtheallocation, then successively to 15% at the end of six years fromtheallocation,to10%attheendofeightyearsfromtheallocationandto5%untilterminationoftheirtermsofoffice.

INFORMATION ON ELEMENTS LIABLE TO HAVE AN IMPACT IN THE EVENT OF A PUBLIC OFFERING

In accordance with existing regulations and to the best ofcompany’s knowledge, the followingmay have an impact in theeventofapublicoffering:

thecapitalstructureandallknowndirectorindirectholdingsin–Somfy SA and all relevant information is described under“Informationonthedistributionofcapitalandholdings” intheManagementBoard’smanagementreport;there are no statutory restrictions regarding the exercise of–voting rights and share transfers or agreements providing forpreferentialconditionsforthetransferoracquisitionofshares,exceptingthosedescribedinthesection“Actioninconcertandretention agreements” of the Management Board’smanagementreport;therearenosecuritiescarryingspecialvotingrights,asidefrom–the existence of double voting rights enjoyed by fully paidshares registered under the same named shareholder for atleastfouryears(seeexcerptfromArticle29ofthebylawsintheManagementBoard’smanagementreport);voting rights attached to Somfy SA shares held by personnel–through FCPE actions Somfy (Somfy Investment Fund Scheme)areexercisedbyarepresentativeappointedbytheSupervisoryBoard of the FCPE to represent it at the Annual GeneralMeeting;

commitments signed between shareholders that could lead to–restrictionsonthetransferofsharesandtheexerciseofvotingrights have been referred to in the “Action in concert andretention agreements” section of the Management Board’smanagementreport;rules governing the appointment and replacement of–Management Board members and any amendments to thebylawsarerespectivelyprovidedforinArticles15and31ofthebylaws;concerningpowers,theManagementBoardhasnodelegations–except those described under the section “Authorisations” ofthisreport;agreements concluded by the company that are amended or–terminated upon a change of control of the company are asfollows: contracts signed between Somfy SA and creditinstitutions concerning credit facilities granted require theformer to inform the said banks of all projects related to asignificantchangeinitsshareholding,notablythoseresultinginatransferofcontroltoanewcompany;therearenoparticularagreementsprovidingforcompensation–to be paid upon termination of the term of office ofManagement Board members or employees, if they resign orare dismissed without fair or serious cause or if theiremploymentisterminatedasaresultofapublicoffering.

OBSERVATIONS OF THE SUPERVISORY BOARD ON THE MANAGEMENT BOARD’S MANAGEMENT REPORT AND THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR

LadiesandGentlemen,

The Management Board has convened this Combined GeneralMeetingspecificallytosubmitthefinancialstatementsfortheyearjustendedforyourapproval.Pursuant to ArticleL.22-10-20 of the Commercial Code, theManagementBoardhaskeptusperiodicallyinformedoncompanytransactionsthroughthepresentationofquarterlyreports.Forverificationandauditingpurposes,theManagementBoardhasalso submitted to us the parent company and consolidatedfinancial statements at 31December 2020, which you arerequestedtoapprovetoday.TheManagementBoardhasalsoprovideduswithitsreport,whichhasjustbeenpresentedtoyou.We hereby submit to you our observations on these financialstatements and on this report pursuant to the provisions of theabove-mentionedArticleL.22-10-20.This report fairly reflects the information that was regularlyprovidedtousduringthefinancialyearjustended.

Groupsaleswere€1,257.1millionforthefinancialyearjustended,anincreaseof4.7%comparedwiththepreviousfinancialyear(up6.1% on a like-for-like basis). They fell 7.5% over the first sixmonths(down7.2%onalike-for-likebasis),duetothehealthcrisisstemmingfromtheCovid-19pandemic,andrecordedanupturnof17.6%inthesecondhalf-year(up20.1%onalike-for-likebasis).Severalregionsendedthefinancialyearonaclearpositivetrend,as was the case for Eastern Europe and Central Europe, whichagain performed very strongly, as well as Northern Europe andNorthAmerica,whichbothperformedwell.The other territoriesweremore adversely affected by the crisis,due in particular to the unavoidable operational disruption andinterruption causedby the lockdownmeasures in the spring,butshowedgoodresilienceovertheyearasawhole.ThiswasthecaseforFranceandtheAfrica&theMiddleEastregion,aswellasforSouthernEuropeandLatinAmerica.



All regions recovered over the second sixmonths and several ofthem succeeded in offsetting a large proportion of the fallrecordedbetweenMarchandMay.Theirrecovery isallthemoreencouraginggiventhatitisnotbasedonaperiodofseveralweeks,meaningitwasmerelyaquestionofcatchingup,butontheentirethirdandfourthquarters.Italsoprovidesevidenceofabasetrendthatwas confirmed – even accentuated – by recent events, as aresult of the increasingly important role played by the home ineveryone’s lives, notably due to the increase in remote workingandthedevelopmentofonlineservices.Sales for the equity-accounted Chinese subsidiaryDooya totalled€201.1millionover the financial year,an increaseof7.3% in realtermsand9.2%onalike-for-likebasis.TheyfellinChina,acountryseverely impacted by the pandemic early in the year, but grewstronglyintherestoftheWorld.Current operating result stood at €260.7million for the financialyear justended,up27.3%(up31.3%ona like-for-likebasis),andthus represented 20.7% of sales, compared with 17.1% thepreviousyear.The combined effect of the recovery in sales recorded in thesecond half-year, a favourablemix of products, and cost savingsstemming from the measures taken within the context of thehealthcrisisisbehindthisgrowth,whichispartiallynon-structuralgiven the exceptional and provisional nature of these measures(reductioninconsulting,marketingandtravelbudgets).Theimpactofthepandemicwasparticularlypronouncedoverthefirst half of the yearwith, on the one hand, a substantial loss inincomedue to the loss in revenues,andon theother, significantproduction and supply chain disruption due to the temporaryshutdown of several manufacturing sites and disorganisation ofcertainsourcesofsupply.Conversely,theprotectivemeasureshavehadamoderateimpactonthefinancialstatements,eventhoughthesafetyofemployeesand compliance with guidelines from the administrativeauthorities, as well as the safeguarding of jobs, have been thepriorities. The impact of external support also proved to bemarginal since thedecisionwas taken tomakeminimal use of itandonlyincertaincountries.Consolidated net profit totalled €213.0million, an increase of30.5%.Ittakesintoaccountapositivecontributionof€10.9millionfrom associates, thanks to the improvement recorded at Dooya,and€52.5millioninincometax.Thereturnoncapitalemployed(ROCE)stoodat29.6%,comparedwith 22.2% the previous year, testament to the quality of theseresults.Shareholders’equitygrew from€1,012.8 to€1,171.0millionoverthe financial year just ended, and the net financial surplusincreasedfrom€310.5to€517.7million.Thegrowthinnetfinancialsurpluswasduetotheincreaseincashflow,thedecline inworkingcapitalrequirementsandtherelativestabilityofothercashflowitems.TheManagementBoardwillproposethepaymentofadividendof€1.85 per share at the next Annual General Meeting,corresponding to a pay-out ratio of 32%, in line with pre-crisisratios.The Management Board’s report also provides all informationrequiredbyexistingregulations.Moreover, this year you will be asked to vote on the followingpoints:

the approval of the information referred to in paragraph I of–ArticleL.22-10-9oftheCommercialCode;the approval of the fixed, variable and exceptional items–comprisingtotalremunerationandbenefitsofanykindpaidorallocatedduringthefinancialyearjustendedtoJeanGuillaumeDESPATURE,ChairmanoftheManagementBoard;

allocatedduringthefinancialyearjustendedtoPierreRIBEIRO,memberoftheManagementBoardandChiefFinancialOfficer;

the approval of the fixed, variable and exceptional items–comprisingtotalremunerationandbenefitsofanykindpaidor

the approval of the fixed, variable and exceptional items–comprisingtotalremunerationandbenefitsofanykindpaidorallocatedduringthefinancialyearjustendedtoMichelROLLIER,ChairmanoftheSupervisoryBoard;theapprovaloftheremunerationpolicyfortheChairmanofthe–Management Board and the member(s) of the ManagementBoard;theauthorisationofanewtreasurysharebuybackprogramme;–theauthorisationtoallocatesharepurchaseoptionstosalaried–employeesand/orcertaincorporateofficersofthecompanyorrelatedcompanies.

You will also be asked to decide to change the company’sadministration and management form by adopting the Board ofDirectorsformand,subjecttotheapprovalofthisresolution:

toapprovethenewwordingofthebylaws;–totransfertotheBoardofDirectorstheauthorisationsgranted–totheManagementBoardbytheGeneralMeeting;toappointtotheroleofDirector:–

JeanGuillaumeDespature,●FlorenceNoblot,●MichelRollier,●SophieDesormière,●AnthonyStahl,●PauleCellard,●BertrandParmentier,●MarieBavarel-Despature;●

tosetat€700,000thetotalannualfixedamounttobeallocated–toDirectors;to approve the remuneration policies for the Chairman of the–BoardofDirectors,theChiefExecutiveOfficer,theDeputyChiefExecutiveOfficerandtheDirectors.

Certaindraft resolutionswillbesubmittedtothevoteandpostalvotescast in relation to these resolutionswillbecountedonly intheeventofrejectionofthe11thresolutiononthechangeinmodeofadministrationandmanagementofthecompany,namely:

the renewal of the terms of office of three members of the–SupervisoryBoard;the non-replacement and non-renewal of a member of the–SupervisoryBoard;the approval of the remuneration policy for members of the–SupervisoryBoard.

Draft resolutions, in line with the agenda, will be submitted foryourapproval.We have no specific comments to make regarding the variousdocuments that have been submitted to you (in particular theManagement Board’s management report), or in relation to theparent company and consolidated financial statements for the2020financialyear.Therefore,weaskyoutoadopttheproposedresolutions,itbeingspecifiedthatassetoutabovethe29thto33rd

resolutions will not be put to the vote and postal votes cast inrelationtotheseresolutionswillnotbecounted in theeventthe11th resolution is approved as they would become devoid ofpurpose.Moreover, the Board would like to stress that, despite thepandemic, 2020 was a further year of development andconsolidation of the business with growth in current operatingprofitability.Theneworganisationinplacehasthusdemonstrateditsstrengthandagility,andthanks to thestrongdedicationofalltheteams,ithasenabledtodealwiththedisruptioncausedbythepandemicandtoreduceitsimpact,bothonemployeesandontheGroup’soperations,whilesimultaneouslycontinuingtoimplementtheGroup’sambitious2030strategy.

TheSupervisoryBoard

97

05


CONSOLIDATED FINANCIALSTATEMENTS

Keyfigures98

2020highlights102

Post-balancesheetevents103

Consolidatedincomestatement105

Consolidatedstatementofcomprehensiveincome106

Consolidatedcashflowstatement107

Consolidatedbalancesheet-Assets108

Consolidatedbalancesheet-Equityandliabilities109

Consolidatedstatementofchangesinequity110

Notestotheconsolidatedfinancialstatements111

05

05 CONSOLIDATED FINANCIAL STATEMENTS


CONSOLIDATED FINANCIALSTATEMENTS

KEY FIGURES

€millions 31/12/20 31/12/19

Sales 1,257.1 1,200.2

Currentoperatingresult 260.7 204.8

Currentoperatingmargin 20.7% 17.1%

Consolidatednetprofit 213.0 163.2

ROCE 29.6% 22.2%

Cashflow 274.5 220.1

NetinvestmentsinintangibleassetsandPPE(includingIFRS16) 64.1 72.0

Shareholders’equity 1,171.0 1,012.8

Netfinancialdebt* -517.7 -310.5

Non-currentassets 599.8 598.9

Workforceatperiodend 6,498 6,067

Dividendpershare(€)** 1.85 1.25

*(-)Netfinancialsurplus.**The2019dividendamountwasreviseddownwardsattheGeneralMeetingof24June2020.

SALESGROWTHBYCUSTOMERLOCATION—

Datain€millions2018 2019 2020 Change

20/19

Sales 1,126.7 1,200.2 1,257.1 +4.7%

586.1

540.6

1,126.7

615.1

585.1

568.9

688.2

1,200.2 1,257.1

+2.7%

+4.2%

+3.4%

+4.9%

+8.2%

+6.5%

-7.5 %

+17.6%

+4.7%

2018 2019 2020

H2

H1

months (down7.2%ona like-for-likebasis),duetothe impactoftheCovid-19pandemicontheconstructionindustry,andrecordedan upturn of 17.6% in the second half-year (up 20.1% on alike-for-likebasis).

Groupsaleswere€1,257.1millionforthefinancialyearjustended,anincreaseof4.7%comparedwiththepreviousfinancialyear(up6.1% on a like-for-like basis). They fell 7.5% over the first six

Severalregionsendedthefinancialyearonaclearpositivetrend,as was the case for Eastern Europe and Central Europe, whichagain performed very strongly (respective growth of 23.2% and12.2% on a like-for-like basis), as well as Northern Europe andNorthAmerica,whichbothperformedwell (respectivegrowthof9.5%and6.2%onalike-for-likebasis).Theother territoriesweremoreadverselyaffectedby thehealthcrisis stemming from the pandemic, due in particular to theunavoidableoperationaldisruptionandinterruptioncausedbythelockdownmeasuresinthespring,butshowedgoodresilienceovertheyearasawhole.ThiswasthecaseforFranceandtheAfrica&Middle East region (respectively recording increases of 1.7% and1.6%ona like-for-likebasis), aswell as for SouthernEuropeandLatinAmerica(respectivelydown1.8%and2.1%ona like-for-likebasis).All regions recovered over the second sixmonths and several ofthem succeeded in offsetting a large proportion of the fallrecordedbetweenMarchandMay.



The most striking performances were recorded by Eastern Europe and Central Europe (respective growth of 26.3% and 17.8% on alike-for-likebasis)–regionsthathadendedthefirsthalf-yearonanalreadyverypositivenote,aswellasNorthernEurope,NorthAmerica,France,SouthernEurope,andAfrica&theMiddleEast(respectivegrowthof24.8%,22.8%,22.5%,21.1%and16.5%onalike-for-likebasis)–regionsthatwerehardhitbythevirusatthepeakofthepandemicandwhichhavesubsequentlybouncedbackstrongly.Anotherpositiveisthattherecoverywasnotbasedonjustafewweeks,whichwouldsimplybeamatterofcatching-up,butwasspreadovertheentiresecondhalf-year(up20.1%onalike-for-likebasisintotal,comprising24.2%growthinthethirdquarterand15.7%inthefourth).Italsoprovidesevidenceofabasetrendthatwasconfirmed–evenaccentuated–bythepandemic,asaresultoftheincreasinglyimportantroleplayedbythehomeineveryone’slives,duetotheincreaseinremoteworkingandthedevelopmentofonlineservices.Salesoftheequity-accountedChinesesubsidiaryDooyatotalled€201.1millionoverthefinancialyear,anincreaseof7.3%(up9.2%onalike-for-likebasis,comprisingadropof3.8%overthefirsthalf-yearandanincreaseof20.5%overthesecond).Like-for-likesalesfell1.2%inChina,acountryseverelyimpactedbythepandemicearlyintheyear,butgrewintherestoftheWorld(up18.6%onalike-for-likebasis).

CENTRAL EUROPE

NORTHERNEUROPE

NORTHAMERICA

LATINAMERICA

FRANCE

SOUTHERNEUROPE

AFRICA & THE MIDDLE EAST

EASTERNEUROPE

ASIA-PACIFIC

261.0

231.7

146.6

134.9

107.1

103.0

19.3

23.3

347.4

341.5

119.9

121.9

60.6

64.2

127.2

107.1

67.9

72.5

12.7%12.2%

8.7%9.5%

4.0%6.2%

-17.3%-2.1%

1.7% 1.7%

-5.7%1.6%

18.8%23.2%

-6.3%-4.3%

-1.7%-1.8%

1,257.11,200.2

TOTAL SALES

4.7%6.1%

31/12/2031/12/19

Change N/N-1Change N/N-1 on a like-for-like basis



GROWTHINCURRENTOPERATINGRESULT—Datain€millions 2019 2020 Change20/19

Currentoperatingresult 204.8 260.7 +27.3%

Currentoperatingmargin(COR/Sales) 17.1% 20.7% +360bps

204.8

-4.5

260.7

24.8 -14.9

269.0

-8.3

42.7

16.1COR/Sales

17.1%

COR/Sales21.1%

COR/Sales20.7%

Salesgrowth

Impact ofmargin onvariable

costs

Cost savings

Investmentsmaintained

Impact of deprecia�on

and provisions

2020 CORlike-for-like

2019

Foreximpact

2019 COR 2020 COR

Currentoperating result stoodat€260.7million for the financial year justended,up27.3% (up31.3%ona like-for-likebasis), and thusrepresented20.7%ofsales,comparedwith17.1%thepreviousyear.Thecombinedeffectof therecovery insalesrecorded inthesecondhalf-year,a favourablemixofproducts,andcostsavingsstemmingfromthemeasurestakenwithinthecontextofthehealthcrisisisbehindthisgrowth,whichispartiallynon-structuralgiventheexceptionalandprovisionalnatureofthesemeasures(reductioninconsulting,marketingandtravelbudgets).Theimpactofthepandemicwasparticularlypronouncedoverthefirsthalfoftheyearwith,ontheonehand,asubstantiallossinincomeduetothelossinrevenues,andontheother,significantproductionandsupplychaindisruptionduetothetemporaryshutdownofseveralmanufacturingsitesanddisorganisationofcertainsourcesofsupply.Conversely,theprotectivemeasureshavehadamoderateimpactonthefinancialstatements,eventhoughthesafetyofemployeesandcompliancewithguidelinesfromtheadministrativeauthorities,aswellasthesafeguardingofjobs,havebeenthepriorities.Theimpactofexternalsupportalsoprovedtobemarginalsincethedecisionwastakentomakeminimaluseofitandonlyincertaincountries.

GROWTHINNETPROFIT—Consolidatednet profit totalled €213.0million, an increaseof 30.5%. It takes into account a positive contributionof €10.9million fromassociates,thankstotheimprovementrecordedatDooya,and€52.5millioninincometax.Thereturnoncapitalemployed(ROCE)stoodat29.6%,comparedwith22.2%thepreviousyear,testamenttothequalityoftheseresults.



NETFINANCIALDEBT—

310.5

517.7

274.5

40.1 -49.8 -15.3

-43.0 0.7

2019 Net financial surplus

Cash flow Change in WCR Net investments in intangible

assets and PPE

New lease liabili�es (IFRS 16)

Dividend Other 2020 Net financial surplus

Shareholders’equitygrewfrom€1,012.8to€1,171.0millionoverthefinancialyearjustended,andthenetfinancialsurplusincreasedfrom€310.5to€517.7million.The growth in net financial surpluswas due to the increase in cash flow, the decline inworking capital requirements and the relativestabilityofothercashflowitems.

OUTLOOK—Therecentperiodhasmadeitpossibletogaugethestrengthoftheresidentialandcommercialdigitalisationmarket,andassuchtobettermeasurethe impactofthedigitalrevolution,demographicandsocietychangesandtheenergytransitiononthedemandforautomatedandconnectedsolutions.However,visibilityremains limitedovertheshort-termduetotheongoinguncertaintyregardingthedevelopmentof thecurrenthealthandeconomiccrisis.Nevertheless,growthinsalesisexpectedoverthecurrentfinancialyear.ItshouldbeallthestrongeroverthefirstsixmonthsgiventhatthebaseeffectwillplayoutfavourablyinmajorregionssuchasFrance,SouthernEuropeandNorthAmerica.Similarly,areturnofthecurrentoperatingmargintopre-crisislevelsisenvisionedastherewillbenorenewalofsavingsmadelastyearinthefieldsofconsultingandmarketing.Thecurrentfinancialyearwillalsoseetheroll-outofthenewstrategicplan,Ambition2030,withtheaimofseekingincreasedefficiencyinprocessesandanoptimisedallocationofresourcesbyharmonisingpracticesandincreasingsynergies,aswellasincreasedaddedvalueintermsoftherange,thankstothedigitalisationofproducts,theinteroperabilityofsolutionsandthedevelopmentofservices.Potential acquisitions will also continue to be assessed in parallel and implemented where appropriate, as can be seen in the recenttakeoverofRepar’stores,theFrenchspecialistintherestorationofrollershutters.TheGrouphasnotbeenadverselyaffectedbyBrexittodateanddoesnotexpecttobeinthefuture.Itmay,however,befurtherimpactedbythehealthcrisisifnewrestrictivemeasuresareimposedinitsmainregionsofoperation(Europe,theUnitedStatesandChina).



2020 HIGHLIGHTS

COVID-19HEALTHCRISIS—DEVELOPMENTOFTHECRISIS

ThesuddenemergenceoftheCovid-19virusinChinainlate2019andthespeedwithwhichitspreadthroughouttheworldinearly2020ledtoasuspensionofoperationsatSomfy’sChinesesitesinFebruary2020 and the temporary stoppage of operations at itsFrench, Italian and Tunisian production sites, as well as at itsBonneville logistics site in France, between late March and lateApril2020.Somfyrapidlyintroducedasafetyprotocolinaccordancewithlocalregulations, with a certain number of protective measuresincludingremoteworkingforallpositionsthatallowedit,inordertoprotectthehealthofitsemployees,safeguardjobsandensurecontinuityofserviceforitscustomers.Operations resumed in a significant and sustained manner frommid-May.Followingdisruptiontosupply,productionandlogistics,the Group put into place a structure to best deal with thesuccessivewavesofthepandemic.TheGrouphasonlymadeverylimiteduseofgovernmentsupportin a few countries. It demonstrated its commitment to regionalorganisations and communities by donating equipment andsupporting emergency projects against poor housing and socialexclusion. The General Meeting also decided to reduce thedividendamountallocatedinrespectofthe2019financialyear.

IMPACTSFORSOMFY

After several months of disruption, the Group has seen asignificantupturninsalessincemid-May,whichwasconfirmedinJune and over the second half-year. For the 12months to31December2020,Groupsalesgrew6.1%ona like-for-likebasisinrelationtothesameperiodof2019.Itfell7.2%onalike-for-likebasisoverthefirstsixmonthsduetotheimpactofthepandemic,before bouncing back strongly, recording an increase of 20.1%overthesecondhalf-year,althoughitisdifficulttodistinguishtheundeniablecatch-upeffectfromtheeffectoforganicgrowth(theGroup’saverageannualgrowthisintheregionof6%).Currentoperatingmarginimproved(20.7%ofsalesin2020against17.1% in 2019) thanks to the combined effect of the upturn insales,afavourableproductmixeffect,andexceptionalone-offcostsavingsmainlyimplementedoverthefirsthalf-year.Thenon-recurringcostsincurredtomanagethecrisiscontinuedtohave no material impact at Group level. They mainly involvedexpenses related to the introduction of protective measures,exceptionalshippingcoststoensurecontinuityofcustomerserviceandcertainpenaltiesfordeliverydelays.Net financial expense was impacted by the foreign exchangeimpact related to fluctuations in currencies under great pressureduringthepandemic(BRL,TRY,USD,etc.).Indicatorsofimpairment(temporaryshutdownsoffactoriesandareductioninactivity)emergedat30June2020followingthecrisisandledtheGrouptocarryoutimpairmenttestswhichresultedinthe impairment of iHome residual goodwill (€0.7 million). Theimpairment tests performed at 31 December 2020 according tothe methodology set out in note 5.1.2 did not result in anyadditionalimpairment.

The Group’s financial structure has therefore remained quitesoundwithanincreaseinthenetfinancialsurplus.

DETAILEDOUTLOOK

2020 demonstrated the resilience of Somfy’s business model,coupledwiththepursuitofcomfort inthehome.Nevertheless, itis not representative in terms of margin level since certainnon-structuralsavingswillnotberenewedinfutureyears.Over the 2021 financial year, sales should increase, with asignificantbaseeffect that is favourableover the first sixmonthsandisunfavourableoverthesecond.Withinaweakenedeconomicenvironment, the current operatingmargin rate should return toitspre-crisislevel.The current environment is highly uncertain, and the aboveassumptions represent the Group’s current scenario. They arelikelytochangeinlinewiththehealthandeconomicsituation.

INFORMATIONONRISKS

TheCovid-19healthcrisisdoesnotcall intoquestiontheGroup’sbusinessmodeloritsfundamentals,butdoescompelittoadaptitsprocesses.Theriskmappinghasbeenupdatedandadjustedinlinewith the feedback relating to the management of the crisis, inparticular, the introductionof rapidandappropriatemeasures toprotect itsemployeesandproductionand supply chainprotocolstoensure thecontinued fulfilmentofcommitments tocustomerswhencrisesoccur.TheGroup is vigilant in its assessment of risks related to foreignexchange and the supply of raw materials and electroniccomponents within a market environment that is challenging.Currencyandrawmaterialhedgingcontinuetobeadaptedinlinewithforecastsandmarkettrends.Theassessmentofliquidityandcredit risks remains unchanged. In addition to its cash of €588.9million at the end of 2020, the Group has €174.0million inconfirmedandundrawncreditfacilitiesandisnotinbreachofanycovenants. Itwillbe inaposition tomeet itsmaturitiesover thenext12months.

NEWORGANISATIONALSTRUCTURE—Thebuildingindustryisundergoingprofoundtransformationswithaccelerated digitalisation, the need for greater energy efficiency,evershorter innovationcyclesandmore.TheseareallchallengesSomfyhasbeguntotacklethankstoitsBelieve&Actstrategicplanfirstimplementedin2017butnowneedtotakeastepfurther.The current organisation, whose foundations date back to 2004,has enabled the Group to expand its range of applications,becoming a pioneer of smart home solutions and expanding itsgeographical presence. After a decade of strong and profitablegrowthandprogress in itsmainmarketsegments,Somfyaimstoaccelerate in order to continue establishing its leadership in itsmarkets.In order tomeet these challenges, on 1January 2020 theGrouphassetupaneworganisationguidedbythreemajorprinciples:afunction-basedarchitecturetosupporttheGroup’sdevelopment;a customer-centric organisation with reduced interfaces tofacilitate decision-making and optimise resource allocation; andfinally a strong focus on the digitalisation of its products,customerrelationsandoperations.



ThefirstdefinitiveactofthischangeistheappointmentofanewExecutive Committee, along with the creation of a Strategy &Insightsdivision,thereorganisationofthethreeactivitiesthatareHome & Building, Access and Connected Solutions into threedivisions: Products & Services, Engineering & CustomerSatisfaction, and Operations & Supply Chain. Finally, the salessubsidiaries will be split into two new geographical areas, forgreatertransversality.In addition to the new organisation, the Executive Committee –under the supervision of JeanGuillaumeDespature, ChairmanoftheManagementBoard–willworkondefiningandimplementinga new, three-year strategic plan, based on the achievementsbroughtbytheBelieve&Actplan.Theroll-outofthisneworganisationhasnotbeendelayedbythehealthcrisis.

CHANGESTOTHECONSOLIDATIONSCOPE—Therewerenomaterialchangestotheconsolidationscopeduringthe2020financialyear.

CONTINGENTLIABILITIES—TheCourtofAppealofChambéryissueditsrulingon21May2019on the dispute between Spirel employees and Somfy SA. Theclaims of the employees in respect of the alleged deliberatebankruptcy of Spirel and the non-material damage caused as aresult of anxiety, disappointment and vexation were judgedinadmissible, therebyconfirmingtheApril2017rulingof theHighCourt of Albertville. The employees lodged an appeal before theCourdeCassation(highestappealcourt)inAugust2019.It should be noted that their claims for damages totalled€8.2million. The liquidator of the company Spirel also sought tohaveSomfySAorderedtorefundadvancesof€2.9millionpaidbytheAGS(GuaranteeFundforthePaymentofSalaryClaims)intheeventthedisposalwasdeclarednullandvoid.

ProceedingsbeforetheLabourCourt–dismissedin2016and2018and involving the employees contesting the grounds for theirdismissal and claimingdamagesof a substantially similar amounttothatsoughtbeforetheCourtofAppeal–arestillongoing.These factors do not alter the Group’s risk evaluation.Consequently, it continues to qualify these risks as contingentliabilitiesandnoprovisionwasthusrecognisedinrelationtothesedisputesat31December2020.

On 5January 2015, Somfy SA transferred its 46.1% direct andindirect equity investment in the share capital of CIAT Group toUnited Technologies Corporation. On 31March 2016, UnitedTechnologies Corporation filed a complaint against the sellers ofthe CIAT shares under the liability guarantee for a total of€28.6million (Somfy’s share being €13.2million). The Groupconsiders these requests to be unfounded, and insufficientlydetailed and justified. In mid-November2017, UTC brought anaction against the sellers before the Paris Commercial Court forthe liability guarantee. Proceedingsbefore theCommercial CourtandtheCourtofAppealareongoing.As the proceedings and the documentation provided by UTCcurrently stand, the Group continues to contest the entirety ofUTC’sclaimsandremainsconfidentregardingtheoutcomeofthisdispute. It has qualified the risk as a contingent liability and noprovisionwasthereforerecognisedat31December2020.At 31December 2020, Somfy SA’s financial statements include areceivable for deferred settlement in relation to the sale of theCIATshares for the sumof€9.7million. Inearly July2017,SomfySAandtheothersellersbroughtanactionagainstUTCbeforetheParis Commercial Court seeking the fulfilment of the acquisitioncontractandthesettlementofthedeferredpaymentsfallingdue.In this regard, at a hearing in February2021, the judge hearingapplications for interim measures sentenced UTC to pay aprovision of €6.6million. These proceedings are however stillongoing.SomfySAremainsconfidentregardingthesettlementofthese sums and therefore no writedown in relation to thesereceivableswasrecognisedat31December2020.

POST-BALANCE SHEET EVENTS

ACQUISITIONOFREPAR’STORES—On14December2020,Somfycompletedtheacquisitionofa60%majoritystakeinthesharecapitalofRepar’stores,aspecialistinrollerblindrepairandupgradeservicesinFrance.ThisshareholdingbecameeffectiveatthestartofJanuary2021followingtheliftingoftheusualconditionsprecedent.Henceforth,Repar’storeswillbefullyconsolidatedinSomfy’sfinancialstatements.TheagreementisaccompaniedbyadditionaloptionsallowingfortheacquisitionofRepar’stores’remainingsharesattheendof2026.TheacquisitionofRepar’stores is in linewithAmbition2030, the10-yearstrategicplanAmbition2030–toconsolidate itsstatusas thepreferred partner in opening and closing automation for both residential and commercial buildings, while simultaneously securing thenecessaryresourcestocapturenewmarketopportunitiesintheservicescategoryandreinforceitscommitmenttoendusers.Beyondtheoperational synergies brought about by this alliance, this combination allows Somfy to strengthen its commitment to sustainabledevelopmentbyinvestingintheabilitytorepairrollerblindsandintheirsustainability.Rollerblindrepairsandupgradesisanichesegmentwithhighgrowthpotentialduetothesizeoftheinstalledbase(morethan65millionrollerblindsestimated inFrance,almosthalfofwhicharenotmotorised)and itscontinuedgrowth(drivenbybothrenovationandnewbuilds).Toservethisfast-growingmarket,Repar’storeswillbeabletoleverageSomfy’sstrongglobalpresenceanditsnetworkofEuropeansubsidiaries.



TheclosingdateofRepar'stores'financialstatementswas30Juneandwaschangedto31December.Repar’stores’mainindicatorsforthefinancialyearended31December2020(6months)arethusasfollows:

€thousands 31/12/20UnauditedIFRS




Incomestatement

Sales 18,847 28,691



€thousands





Balancesheet



Non-currentliabilities 580 825



Repar’storesemploysnearly100staffandhasapproximately200franchisees.Givenanacquisitionpriceof€34.7millionfor60%ofthecapital,theprovisionalgoodwillisapproximately€32.1million,theallocationofwhichwilltakeplaceduringthe2021financialyear.

HEALTHCRISIS—Withinthecurrenthealthcrisisenvironment,theglobalsituationremainsuncertainandmaychangerapidlyaccordingtofactorsthatarehardtocontrol.ItisdifficulttoaccuratelyassessandanticipatetherepercussionsontheeconomyingeneralandontheGroup’sbusinessinparticularin2021.



CONSOLIDATED INCOME STATEMENT

€thousands Notes 31/12/20 31/12/19

Sales (4.1.1) 1,257,128 1,200,241

Otheroperatingincome (4.1.2) 24,630 20,122

Purchasesconsumedandproductionstocked -442,999 -439,181

Employeeexpenses -367,319 -359,219

Externalexpenses -149,017 -159,568

EBITDA 322,424 262,394

Amortisationanddepreciationcharges (5.2)&(5.3) -60,471 -57,642

Chargesto/reversalofcurrentprovisions -1,080 102

Gainsandlossesondisposalofnon-currentoperatingassets -194 -24

CURRENTOPERATINGRESULT 260,678 204,830

Othernon-currentoperatingincomeandexpenses (4.2) -211 -2,515

Goodwillimpairment (4.2)&(5.1.1) -711 -717

OPERATINGRESULT 259,756 201,598

Financialincomefrominvestments– 947 1,313

Financialexpensesrelatedtoborrowings– -3,228 -3,308

Costofnetfinancialdebt -2,281 -1,995

Otherfinancialincomeandexpenses -2,832 -3,071

NETFINANCIALEXPENSE (7.1) -5,114 -5,066

PROFITBEFORETAX 254,643 196,533

Incometax (11.1) -52,511 -37,170

Shareofnetprofit/(loss)fromassociatesandjointventures (13.1) 10,858 3,846

CONSOLIDATEDNETPROFIT 212,990 163,209

AttributabletoGroupshare 213,008 163,227

AttributabletoNon-controllinginterests -18 -18

Basicearningspershare(€) (6.2) 6.19 4.75

Dilutedearningspershare(€) (6.2) 6.18 4.74



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€thousands 31/12/20 31/12/19

Consolidatednetprofit 212,990 163,209

Movementingainsandlossesontranslationofforeigncurrency -14,279 2,955

Movementinfairvalueofforeigncurrencyhedges 452 -182

Movementintaxonitemsthatmaybereclassifiedtoprofitorloss -116 32

Itemsthatmaybereclassifiedtoprofitorloss -13,943 2,805

Revaluationofnetliabilitiesofdefinedbenefitplans -107 -2,637

Movementintaxonitemsthatwillnotbereclassifiedtoprofitorloss 25 19

Itemsthatwillnotbereclassifiedtoprofitorloss -82 -2,618

Itemsofothercomprehensiveincome -14,025 187

Totalcomprehensiveincomefortheperiod 198,965 163,396

AttributabletoGroupshare 198,983 163,414

AttributabletoNon-controllinginterests -18 -18



CONSOLIDATED CASH FLOW STATEMENT


Consolidatednetprofit 212,990 163,209

Depreciation,amortisationandimpairmentlossofassets(excludingcurrentassets) 58,856 57,739

Chargesto/reversalsofprovisionsforliabilities(excludingemployeebenefits) 1,213 -379

Unrealisedgainsandlossesrelatedtofairvaluemovements 96 -14

Unrealisedforeignexchangegainsandlosses 6,884 -1,238

Incomeandexpensesrelatedtostockoptionsandemployeebenefits 5,563 4,854

Depreciation,amortisation,provisionsandothernon-cashitems 72,613 60,963

Profitondisposalofassetsandothers -868 33

Shareofnetprofit/(loss)fromassociatesandjointventures -10,858 -3,845

Deferredtaxexpense 617 -270

Cashflow 274,493 220,091

Costofnetfinancialdebt(excludingnon-cashitems) 2,281 1,995

Taxexpense(excludingdeferredtax) 51,891 37,439

Changeinworkingcapitalrequirements (8.3) 19,333 14,001

Taxpaid -31,147 -25,774

NETCASHFLOWFROMOPERATINGACTIVITIES(A) 316,850 247,752

Acquisition-relateddisbursements:

intangibleassetsandproperty,plantandequipment– (8.2) -50,885 -54,257

non-currentfinancialassets– -686 -514

Disposal-relatedproceeds:

intangibleassetsandproperty,plantandequipment– (8.2) 1,044 950

non-currentfinancialassets– 343 –

Changeincurrentfinancialassets 1,357 2,274

Acquisitionofcompanies,netofcashacquired (8.4) -793 -870

Interestreceived 701 812

NETCASHFLOWFROMINVESTINGACTIVITIES(B) -48,919 -51,605

Increaseinloans 427 –

Repaymentofborrowingsandleaseliabilities -14,459 -14,868

Dividendsandinterimdividendspaid -42,976 -48,094

Movementintreasuryshares 209 747

Interestpaid -3,234 -3,308

NETCASHFLOWFROMFINANCINGANDCAPITALACTIVITIES(C) -60,033 -65,523

Impactofchangesinforeignexchangeratesoncashandcashequivalents(D) -5,569 2,152

NETCHANGEINCASHANDCASHEQUIVALENTS(A+B+C+D) 202,329 132,776

CASHANDCASHEQUIVALENTSATTHESTARTOFTHEPERIOD (8.1) 386,190 253,413

CASHANDCASHEQUIVALENTSATTHEENDOFTHEPERIOD (8.1) 588,519 386,190



CONSOLIDATED BALANCE SHEET - ASSETS

€thousands Notes31/12/20

Net31/12/19

Net

Non-currentassets

Goodwill (5.1.1) 94,390 95,553

Netintangibleassets (5.2) 45,814 39,219

Netproperty,plantandequipment (5.3) 288,257 297,314

Investmentsinassociatesandjointventures (13.1) 145,471 136,549

Financialassets (7.2.1) 3,653 4,216

Otherreceivables (4.6.2) 7 36

Deferredtaxassets (11.3) 20,809 25,305

Employeebenefits (10.2.1) 1,437 683

TotalNon-currentassets 599,839 598,875

Currentassets

Inventories (4.4) 179,993 169,596

Tradereceivables (4.5) 133,063 138,035

Otherreceivables (4.6.1) 29,397 35,833

Currenttaxassets (11.1) 9,522 27,724

Financialassets (7.2.1) 406 477

Derivativeinstruments-assets (7.2.4) 657 160

Cashandcashequivalents (7.2.5) 588,925 387,547

TotalCurrentassets 941,963 759,371

TOTALASSETS 1,541,802 1,358,246



CONSOLIDATED BALANCE SHEET - EQUITY AND LIABILITIES


Shareholders’equity

Sharecapital 7,400 7,400

Sharepremium 1,866 1,866

Reserves 948,646 840,282

Netprofitfortheperiod 213,008 163,227

Groupshare 1,170,919 1,012,775

Non-controllinginterests 49 74

TotalShareholders’equity 1,170,968 1,012,849

Non-currentliabilities

Non-currentprovisions (9.1.1) 9,645 8,548

Otherfinancialliabilities (7.2.2) 40,531 45,030

Otherliabilities (4.7.2) 1,082 1,296

Employeebenefits (10.2.1) 32,573 30,507

Deferredtaxliabilities (11.3) 14,651 16,240

TotalNon-currentliabilities 98,482 101,622

Currentliabilities

Currentprovisions (9.1.2) 11,199 11,253

Otherfinancialliabilities (7.2.2) 30,817 32,267

Tradepayables 112,209 90,003

Otherliabilities (4.7.1) 107,748 102,462

Taxliabilities (11.1) 9,825 7,281

Derivativeinstruments-liabilities (7.2.4) 554 511

TotalCurrentliabilities 272,352 243,776

TOTALEQUITYANDLIABILITIES 1,541,802 1,358,246



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

€thousands

Sharecapital*

Sharepremium

Reserves Totalshareholders'

equity

Non-controllinginterests

Totalequity(Groupshare)

AT31DECEMBER2018 7,400 1,866 885,128 894,394 64 894,329

Netprofitfortheperiod – – 163,209 163,209 9 163,200

Itemsofothercomprehensiveincome – – 187 187 -27 214

Totalcomprehensiveincomefortheperiod – – 163,396 163,396 -18 163,414

Treasurysharetransactions – – 2,263 2,263 – 2,263

Dividends – – -48,094 -48,094 – -48,094

Othermovements** – – 891 891 28 863

AT31DECEMBER2019 7,400 1,866 1,003,583 1,012,849 74 1,012,775

Netprofitfortheperiod – – 212,990 212,990 -8 212,998

Itemsofothercomprehensiveincome – – -14,025 -14,025 -10 -14,015

Totalcomprehensiveincomefortheperiod – – 198,965 198,965 -18 198,983

Treasurysharetransactions – – 1,646 1,646 – 1,646

Dividends – – -42,976 -42,976 – -42,976

Othermovements** – – 484 484 -7 491

AT31DECEMBER2020 7,400 1,866 1,161,702 1,170,968 49 1,170,919

Sharecapitalcomprises37,000,000shareswithaparvalueof€0.20each.*Othermovements include changes to the consolidation scope, exchange rate differences on transactions involving the share capital, aswell as**liabilitiesandsubsequentchangesinliabilitiescorrespondingtoputoptionsgrantedtoholdersofnon-controllinginterests.Thisitemalsoincludesthe reclassification in “Equity - Group share” of the portion of comprehensive income attributable to non-controlling interests covered by a putoption.

The liability that corresponds to put options granted to holders of non-controlling interests is recognised in consideration for thenon-controlling interests thatare thesubjectof theputoption,and forGroupEquity,where thebalance is concerned.Thesubsequentchangestoliabilitiesarerecognisedunder“Equity-Groupshare”.



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ACCOUNTINGPRINCIPLESNOTE1112Consolidatedfinancialstatements–BasisforNote1.1preparation

112

CompliancewithaccountingstandardsNote1.2112

JudgementsandestimatesNote1.3112

NewapplicablestandardsandinterpretationsNote1.4112

CONSOLIDATIONSCOPENOTE2113ConsolidationmethodNote2.1113

ForeignexchangetranslationNote2.2113

BusinesscombinationsNote2.3114

OperationstreatedinaccordancewithIFRS5Note2.4114

SEGMENTREPORTINGNOTE3115

PERFORMANCE-RELATEDDATANOTE4116SalesNote4.1116

Othernon-currentoperatingincomeandNote4.2expenses

117

AlternativeperformancemeasuresNote4.3117

InventoriesNote4.4119

TradereceivablesNote4.5119

Othercurrentandnon-currentreceivablesNote4.6120

Othercurrentandnon-currentliabilitiesNote4.7120

INTANGIBLEASSETSNOTE5ANDPROPERTY,PLANTANDEQUIPMENT

121

GoodwillandimpairmenttestsNote5.1121

OtherintangibleassetsNote5.2122

Property,plantandequipmentNote5.3125

EQUITYANDEARNINGSPERSHARENOTE6128EquityNote6.1128

EarningspershareNote6.2128

FINANCIALITEMSNOTE7129Netfinancialincome/(expense)Note7.1129

FinancialassetsandliabilitiesNote7.2129

FinancialriskmanagementpolicyNote7.3135

ANALYSISOFCASHFLOWNOTE8STATEMENT

138

CashandcashequivalentsNote8.1138

Intangibleassetsandproperty,plantNote8.2andequipment

138

ChangeinworkingcapitalrequirementsNote8.3138

Businessacquisitionsanddisposals,netofcashNote8.4acquiredordisposedof

138

PROVISIONSANDCONTINGENTNOTE9LIABILITIES

138

ProvisionsNote9.1138

ContingentliabilitiesNote9.2139

EMPLOYEEINFORMATIONNOTE10140WorkforceNote10.1140

EmployeebenefitsNote10.2140

Share-basedpaymentsNote10.3143

CURRENTANDDEFERREDTAXNOTE11144TaxproofNote11.1145

DeferredtaxrecognisedinitemsofotherNote11.2comprehensiveincome

146

AnalysisbytypeNote11.3146

OFF-BALANCESHEETNOTE12COMMITMENTS

147

CommitmentsgivenNote12.1147

CommitmentsreceivedNote12.2147

CommitmentstoacquireadditionalsharesinNote12.3companiesnotfully-consolidated

147

INVESTMENTSINASSOCIATESNOTE13ANDJOINTVENTURESANDRELATEDPARTIES

147

InvestmentsinassociatesandjointventuresNote13.1147

Related-partydisclosuresNote13.2148

STATUTORYAUDITORS’FEESNOTE14148

LISTOFCONSOLIDATEDANDNOTE15EQUITY-ACCOUNTEDENTITIES

149



SomfySAisapubliclimitedcompanygovernedbyaManagementBoardandaSupervisoryBoardunderFrenchlaw,listedontheEurolistofEuronext Paris (Compartment A, ISIN Code: FR0013199916). The company name did not change during the financial year. Founded inFrancein1969,andtodayoperatingin58countries,Somfyisthegloballeaderinopeningandclosingautomationforbothresidentialandcommercialbuildings.Apioneerintheconnectedhome,theGroupisconstantlyinnovatingtoguaranteecomfort,well-beingandsecurityin thehomeand is fully committed topromoting sustainabledevelopment. For50years, Somfyhasbeenusingautomation to improvelivingenvironmentsandhasbeencommittedtocreatingreliableandsustainablesolutions,whichhelppromotebetterlivingandwell-beingforall.Thecompanyhasitsregisteredofficeat50,avenueduNouveauMonde74300ClusesintheHaute-SavoieregionofFrance.ItsmainestablishmentisinCluses.SomfySAisa52.65%-subsidiaryoftheFrenchcompanyJ.P.J.S.The Group’s IFRS consolidated financial statements for the 12-month financial year ended 31December 2020 were approved by theManagementBoardon5March2021.Atitsmeetingof10March2021,theSupervisoryBoard,followingverificationandreview,didnotissue any observations and duly authorised their publication. Total assets were €1,541,802thousand and consolidated net profit€212,990thousand(Groupshare:€213,008thousand).All accounting rules andmethods are included in the various noteswhich are groupedby subject andhighlighted in colour for greaterreadabilityandrelevance.

ACCOUNTINGPRINCIPLESNOTE1—

CONSOLIDATEDFINANCIALSTATEMENTS–BASISNOTE1.1FORPREPARATION

Theconsolidatedfinancialstatementsarepresentedinthousandsof Euros. All amounts are rounded to the nearest thousand ofEuros,unlessotherwisespecified.The financial statements havebeenprepared in accordancewiththe historical cost principle, except for a number of assets andliabilitiesthatweremeasuredatfairvalue,inparticularinrelationtoderivativeinstruments.ConsolidatedfinancialstatementsincludethefinancialstatementsofSomfySAanditssubsidiariesat31Decemberofeachyear.Thefinancial statements of subsidiaries are prepared for the samereference period as the parent company and on the basis ofstandardaccountingmethods.Thefinancialyear-endofallcompaniesis31December.

COMPLIANCEWITHACCOUNTINGSTANDARDSNOTE1.2

In application of European regulation 1606/2002 of 19July 2002on international accounting standards, the Group’s consolidatedfinancial statements for the financial year ended 31December2020 have been prepared in accordance with the internationalfinancial reporting standards (“IFRS”) applicable at that date, asapproved by the European Union at the date of preparation ofthesefinancialstatements.

JUDGEMENTSANDESTIMATESNOTE1.3

ThepreparationoftheconsolidatedfinancialstatementsrequiresManagement to make a number of judgments, estimates andassumptions liable to affect the values of assets, liabilities, andincome and expense items in the financial statements, andinformationprovidedinthenotestothefinancialstatements.Dueto the inherently uncertain nature of the assumptions, actualresultsmaydifferfromestimates.TheGroupreviewsitsestimatesand assessments on a regular basis to take past experience intoaccountandincorporatefactorsconsideredrelevantundercurrenteconomicconditions.Themajoritemsofthefinancialstatementsthatmaybesubjecttoestimatesareasfollows:

theimpairmentofgoodwillandintangibleassetsandproperty,–plantandequipment,whosemeasurementisspecificallybasedon future cash flow, discount rate and net realisable valueassumptions(note5.1totheconsolidatedfinancialstatements);theleasetermanddiscountrateforpropertyleases(note5.3to–theconsolidatedfinancialstatements);

retirement commitments, whose measurement is based on a–number of actuarial assumptions (note 10.2.1 to theconsolidatedfinancialstatements);provisions and contingent liabilities (notes9.1 and 9.2 to the–consolidatedfinancialstatements);themeasurementofoptionsassociatedwithstockoptionplans–and free share allocations granted to employees (note 10.3 totheconsolidatedfinancialstatements);themeasurementofcertainfinancialinstrumentsusedtohedge–foreignexchangeand rawmaterials, aswell as certainoptionsnegotiatedontheacquisitionofequityinvestments(notes7.2.2and7.2.4totheconsolidatedfinancialstatements).

As part of thepreparationof these annual consolidated financialstatements,themainjudgmentsmadeandthemainassumptionsused by Management have been updated based on the latestindicatorsavailable.At31December,theGroupreviewsitsperformanceindicatorsandcarriesoutimpairmenttestsifthereisanyindicationthatanassetmayhavebeenimpaired.

NEWAPPLICABLESTANDARDSANDNOTE1.4INTERPRETATIONS

Standards,amendmentsandinterpretationsNote1.4.1whoseapplicationismandatoryforfinancialyearsbeginningonorafter1January2020

TheGrouphasappliedthefollowingstandards,amendmentsandinterpretationsasof1January2020:

Standards Content Applicationdate

AmendmenttoIFRS3 DefinitionofaBusiness Applicablefrom

1January2020

AmendmentstoIAS1andIAS8 DefinitionofMaterial Applicablefrom

1January2020

AmendmentstoIFRS9,IAS39andIFRS7

IBORReform–Phase1 Applicablefrom1January2020

AmendmenttoIFRS16

Covid-19-RelatedRentConcessions

Applicablefrom1June2020

AmendmentstotheConceptualFrameworkinIFRSStandards

AmendmentstoReferencestotheConceptualFrameworkinIFRSStandards

Applicablefrom1January2020

Othernewstandards,includingamendmentstoIFRS9,IAS39andIFRS7 and to IFRS16, had no material impact on the Group’sresultsandfinancialposition.



Standards,amendmentsandinterpretationswhoseapplicationisnotyetmandatoryNote1.4.2

Standards Content Applicationdate

AmendmentstoIAS1 ClassificationofLiabilitiesasCurrentorNon-Current

Applicablefrom1January2023accordingtotheIASB,notyetapprovedbytheEU

AmendmentstoIAS16 ProceedsbeforeIntendedUse Applicablefrom1January2022accordingtotheIASB,notyetapprovedbytheEU

AmendmentstoIAS37 CostofFulfillingaContract Applicablefrom1January2022accordingtotheIASB,notyetapprovedbytheEU

AmendmentstoIFRS3 ReferencetotheConceptualFramework Applicablefrom1January2022accordingtotheIASB,notyetapprovedbytheEU

AmendmentstoIFRS9,IAS39,IFRS7,IFRS4andIFRS16 IBORReform–Phase2 Applicablefrom1January2021according

totheIASB

AnnualimprovementstoIFRS 2018-2020Cycle(IFRS1,IFRS9,IFRS16,IAS41)

Applicablefrom1January2022accordingtotheIASB,notyetapprovedbytheEU

The Group did not opt for the early application of any of these new standards or amendments and is currently assessing the impactresultingfromtheirinitialapplication.Detailedinformationisavailableonthefollowingwebsite:http://www.ifrs.org

CONSOLIDATIONSCOPENOTE2—

CONSOLIDATIONMETHODNOTE2.1

EXCLUSIVECONTROLCompaniesare fully consolidatedwhen theyarecontrolledbytheGroup.Theconceptofcontrolmeansthepowertogovernthe financial andoperational policiesof an affiliated companysoastobenefitfromitsoperations.Control is generally deemed to exist where the Group holdsmore than half of the controlled company’s voting rights.Financial statements of subsidiaries are included in theconsolidated financial statements from the date of effectivecontroltransfer,untilcontrolceasestoexist.Minority shareholders’ interests are included in the balancesheet under a separate headline called “non-controllinginterests”. Non-controlling interests’ share of net profit ispresentedseparately intheincomestatementasanallocationofprofitfortheperiod.

JOINTCONTROLANDSIGNIFICANTINFLUENCECompaniesoverwhichtheGroupexercisescontroljointlywithalimitednumberofpartnersbasedonacontractualagreementareconsolidatedusingtheequitymethod.AssociatesarecompaniesoverwhichtheGrouphassignificantinfluenceontheirfinancialandoperatingpolicies,butdoesnotcontrolthem.CompaniesoverwhichtheGrouphassignificantinfluenceareconsolidatedusingtheequitymethod.Acquisitionexpensesarerecordedinthecostofacquisitionoftheshares.

The consolidation scope is presented in note 15 to theconsolidatedfinancialstatements.

FOREIGNEXCHANGETRANSLATIONNOTE2.2

itemsincludedinthefinancialstatementsofeachoftheseentitiesaremeasuredinthisfunctionalcurrency.

Theconsolidated financial statementsat31December2020havebeenpreparedinEuros,whichistheparentcompany’sfunctionalcurrency.EachGroupentitydeterminesitsfunctionalcurrencyand

RECOGNITIONOFFOREIGNCURRENCYDENOMINATEDTRANSACTIONSINTHEFINANCIALSTATEMENTSOFCONSOLIDATEDCOMPANIESAllforeigncurrencydenominatedtransactionsaretranslatedatthe exchange rate applicable on the transaction date. Foreigncurrencydenominatedamounts included in thebalance sheetare translated at the exchange rate applicable at year-end.Resulting translation differences are recorded in the incomestatement.

TRANSLATIONOFFOREIGNSUBSIDIARIES’FINANCIALSTATEMENTSThe financial statements of Group companies which have adifferent functional currency to the parent company aretranslatedintoEuro,asfollows:

assetsandliabilitiesareconvertedintoEurosattheyear-end–exchangerate;incomeandexpensesaretranslatedattheaverageexchange–rate for the period, provided significant variations in theexchangeratesdonotcallthismethodintoquestion;theresultingtranslationadjustmentsarerecognisedinitems–ofother comprehensive incomewitha correspondingentryinthetranslationreserveundershareholders’equity.

Unrealised exchange differences relating to monetary valuesthat are an integral part of the net investment in foreignsubsidiariesarerecordedinthetranslationadjustmentreservein equity until the disposal of the investment, at which datetheyaretakentotheincomestatement.

At31December2020,noGroupsubsidiaryoperated incountrieswhose economy is hyperinflationary, with the exception ofArgentina. Given the size of the subsidiary in Argentina, theapplicationofIAS29onhyper-inflationaryeconomiesdidnothaveamaterialimpactontheGroup’sfinancialstatements.

http://www.ifrs.org



BUSINESSCOMBINATIONSNOTE2.3

When a company is incorporated in the consolidation scope,theidentifiableassets,liabilitiesandcontingentliabilitiesoftheacquiredentityaremeasuredatfairvaluemeasuredatthedateofacquisition,exceptfornon-currentassetsclassifiedasassetsheld for sale, which are recognised at the fair value net ofdisposalcosts.Goodwill is measured as the difference between totalidentifiable assets, liabilities and contingent liabilities of theacquired entity, individually estimated at fair value, and thetransferred consideration (acquisition price) measured at fairvalueoftheassetstransferred.At the date of the acquisition and for each businesscombination,theGroupcanoptforthepartialgoodwillmethod(limitedtotheequityinterestacquiredbytheGroup)orforthefull goodwill method. If it opts for the full goodwill method,minority interests are measured at fair value and the Grouprecognisesgoodwillonallidentifiableassetsandliabilities.Business combinations prior to 1January 2010 have beentreatedinaccordancewiththepartialgoodwillmethod,whichwastheonlymethodapplicableuntilthatdate.In the case of a business combination achieved in stages, thepreviouslyheldequityinterestisremeasuredatfairvalueatthedatecontrolisacquired.Thedifferencebetweenthefairvalueandthenetbookvalueofthisinvestmentisrecogniseddirectlyinoperatingprofit.Restatements of asset and liability values relating toacquisitionsrecognisedonaprovisionalbasis(duetoexpertiseworkinprogressorsupplementaryanalyses)arerecognisedasretrospective restatements of goodwill if they occur within12monthsfollowingtheacquisitiondate.Beyondthisdeadline,the impactsofrestatementsaredirectlyrecognised in profit or loss for the financial year, except forerrorcorrections.In addition, earnout payments are included in the acquisitioncostattheirfairvalueattheacquisitiondateandregardlessoftheir probability. During the valuation period, subsequentadjustments are offset against goodwill where they relate tofactsandcircumstances thatexistedat theacquisitiondate. Ifnot, and after the end of this period, adjustments to earnoutpayments are recognised directly in the income statement,unless the earnout payments are offset against an equityinstrument.Newly-acquired companies are consolidated from the dateeffectivecontrolisassumed.

OPERATIONSTREATEDINACCORDANCENOTE2.4WITHIFRS5

ASSETSHELDFORSALE

available for immediatesale in theirpresentconditionsubjectonly to terms that are usual and customary for sales of suchassetsandtheirsalemustbehighlyprobable.Forasaletoberegardedashighlyprobable,thefollowingcriteriamustbemet:

Pursuant to IFRS5 – Non-current assets held for sale, anon-current asset or asset group must be classified in thebalancesheetasheldforsaleifitsbookvaluewillberecoveredprincipally through a sale transaction rather than throughcontinuing use. Within the meaning of the standard, “sale”includessales,distributionsandexchangesagainstotherassets.The non-current asset or asset group held for sale must be

theappropriatelevelofmanagementmustbecommittedto–adisposalplan;an active programme to locate a buyer and complete the–planmusthavebeeninitiated;theassetmustbeactivelymarketedforsaleatapricethatis–reasonableinrelationtoitscurrentfairvalue;the disposal must be reliably expected to be completed–within 12months from the reclassification of the assets asheldfordisposalorexchange;theactionsrequiredtocompletetheplanmustindicatethat–itisunlikelythatsignificantchangeswillbemadeorthattheplanwillbewithdrawn.

Prior to their reclassification as “Assets held for sale”, thenon-currentassetorassetsandliabilitiesofthedisposalgroupare measured in accordance with their respective applicablestandards. Following their reclassification as “Assets held forsale”, thenon-currentassetorgroupofassets ismeasuredatthe lowerof its netbook valueand its fair value less costs tosell,animpairmentlossbeingrecognisedwhererelevant.On reclassificationof anon-current asset asheld for sale, thedepreciation/amortisationofthisassetceases.Inthecaseofadisposalresultinginalossofcontrol,theassetsandliabilitiesoftheentiresubsidiaryareclassifiedasassetsandliabilities“heldforsale”inthe“Assetsheldforsale”and“Liabilitiesrelatedtoassets held for sale” balance sheet items, as soon as thedisposalmeetstheclassificationcriteriaofIFRS5.PursuanttotheapplicationofIFRS5:

inthecaseofbalancesheet itemsreclassifiedasassetsand–liabilities held for sale, no adjustments are made tocomparativefiguresforpriorperiods;incomestatementandcashflowstatementitemsrelatingto–theindividualassetsheldforsalearenotrestated.

DISCONTINUEDOPERATIONSA discontinued operation is a component of Group activitieswhose business and cash flows are clearly separate from theremainderoftheGroupand:

represents either a separate major line of business or a–geographicalareaofoperations;ispartofasinglecoordinatedplantodisposeofaseparate–majorlineofbusinessorgeographicalareaofoperations;orisasubsidiaryacquiredexclusivelywithaviewtoresale.–

Classification as a discontinued operation takes place at thetime of sale or earlier if the activity meets the criteria forclassificationasheldforsale.Whenanactivity is classifiedas adiscontinuedoperation, thecomparativestatementofcomprehensiveincomeisrestatedasif the entity had met the criteria for classification as adiscontinued operation from the start of the comparativeperiod.

TheGrouphasnotperformedanytransactionwithinthescopeofIFRS5in2019and2020.



SEGMENTREPORTINGNOTE3—In accordancewith theprovisionsof IFRS8 –Operating Segments, the information for each segment set out below is basedon theinternalreportingprocessusedbyGeneralManagementtoassessperformanceandallocateresourcestothevarioussegments.GeneralManagementisthechiefoperatingdecision-makerwithinthemeaningofIFRS8.

Followingtheneworganisationput inplaceon1January2020,Somfynowincludesentitieswhoseactivitiescorrespondtothebusinesslines“Exterior”,“WindowFashion”,“AccessandSecurity”,“ControlsandSensors”and“ConnectedServices”,andisstructuredaroundtwogeographicregions.Thegeographic locationofassetswasusedassolesegmentreportingcriterion.Managementmakes itsdecisionsbasedonthisstrategicfocususingreportingbygeographicregionasitskeyanalysistool.Since1January2020,thetwogeographicregionsfollowedare:

North&West(CentralEurope,NorthernEurope,NorthAmericaandLatinAmerica);–South&East(France,SouthernEurope,Africa&theMiddleEast,EasternEuropeandAsia-Pacific).–

2019datahavebeenrestated.

AT31DECEMBER2020



Segmentsales 527,372 1,059,028 -329,272 1,257,128





Cashflow 49,635 224,858 – 274,493


Goodwill 2,619 91,771 – 94,390



AT31DECEMBER2019



Segmentsales 483,298 991,801 -274,859 1,200,241





Cashflow 36,300 183,791 – 220,091


Goodwill 2,739 92,813 – 95,553





PERFORMANCE-RELATEDDATANOTE4—

SALESNOTE4.1

Revenue recognition isbasedonananalysis that includes fivesuccessive steps, in accordance with IFRS15 – Revenue fromContractswithCustomers:

identifythecontract;–identify the various performance obligations, i.e. list the–distinctgoodsorservicestheselleriscommittedtosupplytothepurchaser;determinethetotalpriceofthecontract;–allocatethetotalpricetoeachperformanceobligation;–recognise revenue when a performance obligation is–satisfied.

Withregardtothesaleofproducts,theGroupactsonitsownbehalfandnotasanagent.Productsalesaregenerallytheonlyperformanceobligationofthecontracts.Revenueisrecognisedwhencontrolofthegoodsistransferredtothepurchaser,inthiscasewhenthedeliveryorshipmenthasbeenmade.

customer with any service other than the assurance that theproduct is free from defect and therefore continue to berecognised in accordancewith IAS37 – Provisions, ContingentLiabilitiesandContingentAssets.

The warranties offered to purchasers cover defects in thedesign or manufacture of products. They do not provide the

The amount that Somfy actually receives as consideration forthe products delivered, as well as the revenue from salesrecorded in the income statement may vary due to deferreddiscounts agreedby contractual agreementsor at the startofcommercial campaigns. These discounts will be paid to thecustomer at the end of the reference period subject to theachievementoftheobjectivessetfortherelevantperiod.Theirvalueisdeterminedusingtheexpectedvaluemethod.As for projects combining products and services, except asmentionedbelow,suppliesofgoodsandservicesareidentifiedas two separate performance obligations, which must beassessed individually as if theywere sold separately. Revenuefrom products is thus recognised at the date of delivery orshipment,whilerevenuefromservices isrecognisedwhentheserviceisprovided.Whentheproductsandservicesrelatetoa large-scaleprojectwhose characteristics are set for each customer individually,theyrepresentasingleperformanceobligationandrevenue isrecognisedonanongoingbasisoverthedurationoftheprojectascostsareincurred.

SalesbycustomerlocationNote4.1.1

ThispresentationbycustomerlocationwassupplementedbyoursegmentreportingpursuanttoIFRS8,whichisbasedonthegeographicregionsinwhichourassetsarebased,namelytheNorth&WestandSouth&Eastregions.

€thousands 31/12/20 31/12/19 ChangeN/N-1 ChangeN/N-1onalike-for-likebasis

CentralEurope 261,044 231,716 12.7% 12.2%

ofwhichGermany 212,185 186,538 13.7% 13.7%

NorthernEurope 146,613 134,911 8.7% 9.5%

NorthAmerica 107,127 102,972 4.0% 6.2%

LatinAmerica 19,286 23,331 -17.3% -2.1%

NORTH&WEST 534,069 492,930 8.3% 9.5%

France 347,444 341,548 1.7% 1.7%

SouthernEurope 119,880 121,910 -1.7% -1.8%

Africa&theMiddleEast 60,604 64,236 -5.7% 1.6%

EasternEurope 127,187 107,099 18.8% 23.2%

Asia-Pacific 67,943 72,518 -6.3% -4.3%

SOUTH&EAST 723,059 707,312 2.2% 3.7%

TOTALSALES 1,257,128 1,200,241 4.7% 6.1%

ThechangeN/N-1onalike-for-likebasisiscalculatedbyapplyingtheN-1exchangeratestotheperiodscomparedandusingtheN-1scopeforbothfinancialyears(seenote4.3.1).Ascontractswithcustomersareexpectedtohaveaninitialtermofoneyearorless,noinformationisprovidedregardinganyremainingobligationsat31December2020and31December2019,inaccordancewiththesimplificationmeasuresofIFRS15.



OtheroperatingincomeNote4.1.2

Other operating income totalled €24.6million in 2020 comparedwith €20.1million in 2019. This includes refundable tax credits, othermiscellaneousrebillingsandinsuranceincomereceivable.

OTHERNON-CURRENTOPERATINGINCOMEANDEXPENSESNOTE4.2

Currentoperatingresultisdefinedasthedifferencebetween:operating result including all revenues and charges, except those generated from finance activities, equity-accounted companies,–discontinuedoperations,operationsheldfordisposalorincometax;andothernon-currentoperatingincomeandexpenses.–

Othernon-currentoperatingincomeandexpensesrelatetofactorsthatareunusual,abnormal,infrequentandparticularlysignificant,whichcouldmisleadtheunderstandingoftheGroup’sconsolidatedperformance.Thesenotablyincludethecapitalgainsandlossesonassetdisposals,restructuringcostsandprovisionsofanatureliabletoaffecttheunderstandingofthecurrentoperatingresult.Currentoperatingresultreflectscompanyperformance.Theamortisationofintangibleassetsallocatedaspartofbusinesscombinationsisincludedincurrentoperatingresult.

€thousands 31/12/20 31/12/19

Chargeto/reversalofnon-currentprovisions 1,091 -466

Othernon-recurringitems -1,198 -2,040

Non-currentincome– 96 156

Non-currentexpenses– -1,294 -2,197

Netgain/(loss)ondisposalofnon-currentassets -104 -9

OTHERNON-CURRENTOPERATINGINCOMEANDEXPENSES -211 -2,515

GOODWILLIMPAIRMENT -711 -717

Bothat31December2020and2019,therevisionoftheiHomebusinessplanledtotherecognitionofgoodwillimpairmentof€0.7million.GoodwillrelatedtoiHomeisnowfullywrittendown.Othernon-currentoperatingincomeandexpenseswerenotmaterialin2020.Itshouldbenotedthatin2019othernon-currentoperatingincome and expenses included the cost of closing down small distribution entities (€1.5million) and additional expenditure incurred inshuttingdowntheprojectinChina(€0.3million).

ALTERNATIVEPERFORMANCEMEASURESNOTE4.3

ChangeN/N-1onalike-for-likebasisNote4.3.1

TheN/N-1changeonalike-for-likebasisiscalculatedbyapplyingtheN-1accountingandconsolidationmethodsandexchangeratestotheperiodscomparedandusingtheN-1scopeforbothfinancialyears.TheN/N-1changeatactualaccountingmethods,exchangeratesandconsolidationscope–orchangeinrealterms–correspondstothechangebasedonactualaccountingandconsolidationmethods,exchangeratesandconsolidationscope.

At31/12/20Sales Currentoperating

result

N/N-1CHANGEONALIKE-FOR-LIKEBASIS 6.1% 31.3%

Foreximpact -1.4% -4.0%

Scopeimpact – –

Changeinaccountingmethodimpact – –

N/N-1CHANGEATACTUALACCOUNTINGMETHODS,EXCHANGERATESANDCONSOLIDATIONSCOPE 4.7% 27.3%



CurrentoperatingmarginNote4.3.2

Currentoperatingmargincorrespondstocurrentoperatingresultasaproportionofsales(COR/Sales).Itisaninterestingperformanceindicatorasitreflectsoperatingprofitability.

€thousands 31/12/20 31/12/19


Sales 1,257,128 1,200,241

CURRENTOPERATINGMARGIN 20.7% 17.1%

ROCENote4.3.3

ROCEcorrespondstothereturnoncapitalinvested(employed)aftertax,equatingtotheratio,expressedasapercentage,ofCurrentOperatingResultaftertaxappliedatanormativeratetocapitalinvested(oremployed).Capital invested corresponds to the sum of shareholders’ equity (with the effects of goodwill impairment being excluded) and netfinancialdebt.



Restatedeffectivetaxrate (11.1) 20.62% 18.91%

Currentoperatingresultaftertaximpact 206,923 166,091

Shareholders’equity 1,170,968 1,012,849

Neutralisationofgoodwillimpairment (5.1.2) 45,353 45,259

Restatedshareholders’equity 1,216,321 1,058,108

Netfinancialdebt (7.2.3) -517,719 -310,535

Capitalinvested(capitalemployed) 698,602 747,574

ROCE(RETURNONCAPITALEMPLOYED) 29.6% 22.2%

NetfinancialdebtNote4.3.4

The net financial debt corresponds to the difference between financial assets and financial liabilities. It notably takes into accountunlistedbondsreceivable, issuedbycertaincompanies inwhichsharesareheldorrelatedentities,earnoutonacquisitions, liabilitiesrelatingtooptionsgrantedtominorityshareholdersinfully-consolidatedcompaniesanddeferredsettlementsofafinancialnature.Notincludedaresecuritiesinnon-controllingequityinvestments,deposits&guaranteesandgovernmentgrants.

Detailsofthecalculationofthenetfinancialdebtareprovidedinnote7.2.3.



INVENTORIESNOTE4.4

Inventoriesarevaluedattheirprocurementcost,determinedusingtheweightedaverageunitcostmethod.Inparticular,inventorycostmeasurementtakesintoaccountthefollowingitems:

thegrossvalueofrawmaterialsandsuppliesincludesthepurchasepriceandancillaryexpenses;–expenses incurred tobring inventories to theplace theyare located, and in the condition theyare in, are integrated in inventory–procurementcost;manufacturedproductsaremeasuredatproductioncost,whichincludesconsumables,directandindirectproductionexpensesand–depreciationchargesofassetsusedinthemanufacturingprocess;intragroupprofitsincludedininventoriesareeliminated;–borrowingcostsarenotincludedinthecostofinventory.–

Thevalueofinventoriesandworkinprogressisimpairedwhentheirnetrealisablevalueislowerthantheirbookvalue.Net realisablevalue is theestimated sellingpriceundernormalbusiness conditions,afterdeductingestimatedcompletioncostsandestimatedsellingexpenses.

€thousands 31/12/20 31/12/19

Grossvalues

Rawmaterialsandothersupplies 54,065 54,166

Finishedgoodsandmerchandise 139,390 130,055

Total 193,455 184,221

Provisions -13,462 -14,626

NETVALUES 179,993 169,596

€thousands

Value31/12/19

Netcharges Exchangerate

movements

Changesinconsolidation

scopeandmethod

Othermovements

Value31/12/20

Inventoryprovisions -14,626 755 409 – – -13,462

TRADERECEIVABLESNOTE4.5

Tradereceivablesarerecordedattheirnominalvalueandaprovisionforwritedownisestablishedwhenreceivablesareunlikelytobecollected.

Customer credit risk is linked to the receivablesportfolio and the sometimes challenging economic environment in certainparts of theworld.Nevertheless,customerprofile,theGroup’sinternationalgeographicpresenceandthecreditinsurancecoverhelptomitigatethisrisk.TheGrouplimitsitsexposuretocreditriskrelatedtotradereceivablesbyimplementinginternalprocedures(creditworthinessstudyofnewcustomers,permanentmonitoringofoutstandingamounts,analysisoftheeconomicenvironment,etc.).Creditinsurancecontracts,bothinFranceandinternationally,alsomitigatetheconsequencesofcustomerdefault.Approximately90%ofsalesarecoveredbysuchcontracts.In accordance with IFRS9, expected impairment losses on trade receivables are measured on the basis of an impairment table usingimpairmentratesbasedonthedurationoflatepayments.Thistablehasnotbeenaffectedbythehealthcrisis.Whilesomecustomersweresubjecttospecificmonitoring,nomajordefaultsorsignificantdelaysincustomerpaymentswereidentifiedintheyear.TheGroup’s exposure to credit risk related to trade receivables is thereforemainly influenced by the individual characteristics of eachcustomer.TheGroupalsotakesintoconsiderationfactorsthatmayinfluencetheassessmentofrisk,inparticulartheeconomicbackgroundofcertaincountriesinwhichcustomersarelocated.

€thousands 31/12/20 31/12/19

Grossvalue 144,005 150,633

Provision -10,941 -12,598

NETVALUE 133,063 138,035



€thousands

Value31/12/19

Charges Usedreversals

Unusedreversals

Exchangerate

movements

Changesinconsolidation

scopeandmethod

Othermove-ments

Value31/12/20

Provisionforbaddebts -12,598 -1,200 1,340 936 580 – – -10,941

At31December2020,thematurityprofileoftradereceivableswasasfollows:

€thousands Notoverdue

Overduebetween

Total0to

3months3to

6months6to

9monthsMorethan9months

Grossvalue 121,060 11,147 1,155 775 9,870 144,005

Provision -31 -358 -707 -578 -9,268 -10,941

OTHERCURRENTANDNON-CURRENTRECEIVABLESNOTE4.6

OthercurrentreceivablesNote4.6.1

€thousands 31/12/20 31/12/19

Grossvalues

Receivablesfromemployees 569 579

Othertaxes(includingVAT) 10,434 10,182

Prepaidexpenses 7,077 6,979

Otherreceivables 11,317 18,092

TOTAL 29,397 35,833

“Otherreceivables”notablyincludecurrentreceivablesonthedisposalofCIATtotalling€9.7millionat31December2020,unchangedfrom31December2019.

Othernon-currentreceivablesNote4.6.2

Othernon-currentreceivablesarenotmaterial.

OTHERCURRENTANDNON-CURRENTLIABILITIESNOTE4.7

Otherpayablesarerecognisedattheirnominalvalue.

OthercurrentliabilitiesNote4.7.1

€thousands 31/12/20 31/12/19

Socialliabilities 91,650 82,948

Taxliabilities 12,425 15,085

Deferredincome 315 346

Fixedassetssuppliers 2,868 3,539

Other 491 544

TOTAL 107,748 102,462



Othernon-currentliabilitiesNote4.7.2

€thousands 31/12/20 31/12/19

Otheroperatingliabilities – 162

Othernon-operatingliabilities 1,082 1,133

TOTAL 1,082 1,296

NOTE5INTANGIBLEASSETSANDPROPERTY,PLANTANDEQUIPMENT—

GOODWILLANDIMPAIRMENTTESTSNOTE5.1

GoodwillNote5.1.1

Goodwillismeasuredusingthemethoddescribedinnote2.3.Goodwillissubjecttoimpairmenttestsatleastonceannually,ormorefrequentlywheneventsorchangesincircumstancesindicatethatthegoodwillhasbeenimpaired(indicationofimpairment,seenote5.1.2).Recognisedimpairmentcannotbereversed.

€thousands Value

At1January2019 96,225

Impactofchangesinconsolidationscopeandmethod –

Impactofchangesinforeignexchangerates 45

Chargeforimpairment -717

AT31DECEMBER2019 95,553

Impactofchangesinconsolidationscopeandmethod –

Impactofchangesinforeignexchangerates -452

Chargeforimpairment -711

AT31DECEMBER2020 94,390

Atboth31December2020and2019, the charge for impairmentrelatedtoiHome.

ImpairmenttestsNote5.1.2

IAS36 defines the procedures to be applied by a company toensure that the net book value of its assets does not exceedtheir recoverableamount, that is theamount tobe recoveredfromtheuseorthedisposaloftheassets.Exceptforgoodwillandintangibleassetswithanindefinitelife,whichrequiresystematicannual impairmenttestsatyear-end,the recoverable amount of an asset is estimated every timethereisanindicationthattheassetmaybeimpaired.Arecoverableamountisestimatedforeachindividualasset. Ifit isnotpossibletodoso,assetsarebroughttogether inCashGenerating Units (CGUs), whose recoverable amount issubsequentlymeasured.ACashGeneratingUnitisthesmallestgroupofassetstowhichtheassetbelongs,whichgeneratescashinflowsthatarelargelyindependentofthecashinflowsfromotherassetsorgroupsofassets.CGUs have been identified within the Group. They primarilycomprise the Group’s legal entities that have been acquiredthroughmergerandacquisitiontransactions.

AnimpairmenttestinvolvescomparingtherecoverableamountoftheCGUwith itsbookvalue.Therecoverableamountofanassetismeasuredatthehigherofitsfairvalue,afterdeductionofdisposalcosts,anditsvalueinuse.If the recoverable amount exceeds the net book value of theCGUatperiodend,noimpairmentisrecognised.However, if this amount is lower than the net book value, animpairmentlossequaltothedifferenceisrecognisedinpriorityagainstgoodwill.Thisimpairmentlossmaynotbereversed.Fair value after deduction of disposal costs is the amountobtainable from the sale of an asset in an arm’s lengthtransaction between knowledgeable, willing parties, afterdeductingdisposalcosts.Value in use is determined based on cash flows, which areestimated using plans or budgets over a maximum period offiveyears;thecashflowsbeyondthatdateareextrapolatedbyapplying a constant or decreasing rate of change, and arediscounted by using long-term post-tax market rates, whichreflectthemarket’sestimatesofthetimevalueofmoneyandthe specific risks inherent to the assets. In certain cases, cashflowscanbeestimatedoverlongerperiods,tobejustifiedCGUbyCGU.Cash flows are evaluated based on budgets and three-yearforecasts forcompanieswhichoperate inamarket theyknowand understand well. Generally, these are companies whosestrategies are not expected to change greatly. On the otherhand, the period is extended to five years for companies inemergingmarkets,forwhichthegrowthpotentialandmaturityarefurtheraway.Thesecashflowshavebeenprojectedoverseveralyearsusingspecific growth rates which are consistent with the Group’shistoricalgrowthrates.The growth rate used to project cash flows to infinity isconsistent with the long-term inflation rate relevant to thecountriesconcerned.The discount rate used corresponds to the weighted averagecost of capital and reflects the expected return on investedcapital(equityandliabilitiesnecessarytofinanceoperations).Itis calculated based on the financial data extracted from asampleofcomparablecompanies,comprisinglistedcompaniesoperatinginthesamebusinesssegmentasthecompaniestobevalued.Riskismainlytakenintoaccountatacashflowlevel.



At 31December 2020, as at every year-end or every time thatindicationsof impairmentexist, theGroupre-examinedthevalueofgoodwillassociatedwithCashGeneratingUnits.Indicatorsofimpairment(temporaryshutdownsoffactoriesandareduction in activity) emerged following the health crisis and ledtheGrouptorefinethe impairmenttestassumptionsof itsmajorCGUs.The impairment testswere conducted using the discounted cashflow method and based on the business plans reviewed by themanagement responsible for the CGUs, in order to take intoaccount the consequences of the current crisis and recoveryassumptions. The Management Board and the Audit Committeehavealsoruledonthefindingsofthesetests.

Themainassumptionsusedareasfollows:2020 demonstrated the resilience of Somfy’s business model.–Nevertheless, it is not representative in terms ofmargin levelsince certain non-structural savings will not be renewed infutureyears;over the 2021 financial year, sales should increase, with a–significantbaseeffectthatisfavourableoverthefirstsixmonthsandisunfavourableoverthesecond;within a weakened 2021 economic environment, the current–operatingmarginrateshouldreturntoitspre-crisislevel;discountandgrowthtoinfinityratesareidenticaltothoseused–at31December2019.

The current environment is highly uncertain, and the aboveassumptions represent the Group’s current scenario. They arelikelytochangeinlinewiththehealthandeconomicsituation.

BREAKDOWNOFTHEGOODWILLOFTHEMAINCGUSANDDETAILSOFTHEMAINASSUMPTIONSUSEDFOREACHCGUAT31DECEMBER2020

€thousandsGrossvalue Impairment Netvalue Discountrate Rateofgrowth

toinfinity

BFT 100,578 -20,397 80,182 10.0% 2.0%

Domis 1,091 – 1,091 10.0% 2.0%

Axis/SomfyActivitésSA/SomfyProtectbyMyfox 20,126 -9,700 10,426 10.0% 2.0%

Pujol 4,975 -4,975 – – –

Neocontrol 300 -300 – – –

LianDa 8,659 -8,659 – – –

iHome 1,322 -1,322 – 18.0% 2.5%

Simu 2,367 – 2,367 10.0% 2.0%

Other 325 – 325 10.0% 2.0%

TOTALFULLY-CONSOLIDATEDCOMPANIES 139,743 -45,353 94,390 – –

O&OandPujolItaliaweremergedintoBFTwitheffectfrom1January2020.Theseimpairmenttestsledtotherecognitionofadditionalgoodwillimpairmentof€0.7millioninrelationtoiHomeat30June2020.Followingareviewofthevalueofothergoodwill,nootherimpairmentchargewasrecognisedduringthe2020financialyear.Furthermore,noimpairmentwasnecessaryinrelationtoassetswithanunspecifiedlifeandtheuseofwhichis independentfromotherassets.

SensitivityanalysisThe Group conducted sensitivity analyses on the results ofimpairmenttestsusingdifferentassumptionsforEBITDAratioanddiscountrates.Analyses of the sensitivity of calculations to assumptionsconsidered individually, including changes deemed reasonablypossible in these assumptions, have highlighted scenarios wherethe recoverable valuewould fall below the book value of assetssubject to the tests, therefore requiringadditional impairmentofthelatter.Thetotal impairmentoftheBFTgoodwillat theendof2020was€20.4million(includingO&OandPujolItalia).Atwo-pointincreaseinthediscountratecombinedwithaoneandahalf-pointdecreasein the EBITDA to sales ratio in the normative flow used in thecalculation of the terminal value would require an additionalimpairmentof€1.5million.

OTHERINTANGIBLEASSETSNOTE5.2

Intangible assets acquired by the Group are recognised athistorical cost, after deduction of accumulated amortisationandpotentialwritedown.Intangibleassetsprimarilycomprise:

SOFTWAREInternally-developed software is recognised on the balancesheet when the following two conditions are metsimultaneously:

it isprobablethatthefutureeconomicbenefitsattributable–tothesoftwarewillflowtothecompany;anditscostorvaluecanbemeasuredreliably.–

Conditions defined by IAS38 in terms of development costcapitalisation must also be met (including project technicalfeasibility, intention to complete the software and availabilityofresources).



TheGroupownstwomajortypesofsoftware:software subject to a five-stage development project and–rolledoutinseveralcountriesisamortisedonastraight-linebasisovertenyears.

The five stages characterising the implementationof this typeofITprojectsareasfollows:

the“initiation”stage,endinginadecisiontocarryoutornot–anITsolutionresearchtomeetaspecificissue;the “assessment” stage, ending in the choice of a solution,–oftentheselectionofalicence;the“study”and“realisation”stages,resultinginadecisionto–implementtheroll-outofthesolution;the “implementation” stage, ending in the transfer of the–applicationtosupportservices.Thisisthesoftwareroll-out.

Thissoftwareisparticularlyrelatedtotheroll-outofITsystems.Development expenses incurred during the “study” and“realisation”stagesmaybecapitalised ifallcriteriadefinedbyIAS38arecompliedwith.

ready-to-usesoftware, that issoftwarewhoseoperationby–the Group is not subject to a five-stage project. It isamortisedonastraight-linebasisoverfouryears.

PATENTSOnly acquired patents and related filing expenses arecapitalised.Patents are amortised on a straight-line basis over their legalprotectionperiod.Costsofrenewalofpatentsareincludedincostsfortheyear.

DEVELOPMENTCOSTSDevelopment costs are recognised as balance sheet assetswhenallcriteriadefinedbyIAS38aremet:

projecttechnicalfeasibility;–intention to complete the intangible asset so that it is–availableforuseorsale;abilitytouseorselltheintangibleasset;–generationoffutureeconomicbenefits;–availabilityofresources;–ability to reliably measure the expenditure attributable to–theintangibleassetduringitsdevelopment.

Onlydevelopmentcostsgeneratedbyprojectsdedicatedtothedevelopmentofnewproductsandconductedinfivestagesarecapitalised,asfollows:

the “assessment” stage, consisting in the production of–assessment elements enabling the Group to make thedecisiontolaunchtheprojectornot;the“pre-study”stage,whoseobjective is toselect technical–solutions, validate product feasibility and the marketingstrategytoplacetheproductonthemarket;the“study”stage,whichenablestosetthedefinitionofthe–product,aswellasindustrialandmarketingresources;the “realisation” stage, which consists in qualifying the–product, establishing industrial resources in productionfacilities, as well as marketing resources. This stage alsodefinesprojectclosingcriteria;the“launch”stage,featuringproductmanufacturingandthe–qualificationofindustrialandmarketingresources.

Thefirsttwostages,entitled“assessment”and“pre-study”areresearchphases.Expensesincurredarethusrecognisedascostsforthefinancialyear.Development expenses incurred during the “study” and“realisation”stagesmaybecapitalised ifallcriteriadefinedbyIAS38arecompliedwith.Capitaliseddevelopmentcostsareamortisedonastraight-linebasis,dependingontheusefullifeoftheassetfromthedateofitscommissioning(fourtotenyears,dependingonthetypeofproductdeveloped).Thevalueofprojectsinprogressisrecognisedasanintangibleasset in progress, until the “launch” stage, which marks thebeginningofprojectroll-out.NoresidualvalueisrecognisedatGroupleveltodeterminethebasisforamortisationofintangibleassets.Subsequentexpendituresaregenerallyrecognisedasexpensesforthefinancialyear.

CUSTOMERRELATIONSHIPSCustomerrelationshipsareestimatedandrecordedasanasseton thebalance sheet as part of business combinations. Theseintangible assets are amortised over their estimated value inuse.

BRANDSBrandsareestimatedandrecordedasanassetonthebalancesheetaspartofbusinesscombinations.Theseintangibleassetshave indeterminateuseful livesandaresubjectto impairmenttestsat leastonceayearormore frequently,wheneventsorchangesincircumstancesindicatethattheyhavebeenimpaired(indicationofimpairment).



€thousands

Allocatedintangible

assets

Develop-mentcosts

Patentsand

brands

Software Otherintangible

assets

Inprogress

andadvance

payments

Total

Grossvalueat1January2020 9,791 37,045 4,149 56,048 2,393 10,358 119,784

Acquisitions – 88 52 662 34 16,721 17,557

Disposals – -4,870 -41 -433 -179 – -5,523

Impactofchangesinforeignexchangerates -112 -22 -11 -111 -58 – -314

Impactofchangesinconsolidationscopeandmethod – – – – – – –

Othermovements – 3,730 – 3,521 330 -7,580 –

AT31DECEMBER2020 9,679 35,971 4,149 59,686 2,519 19,499 131,503

Accumulatedamortisationat1January2020 -8,030 -22,188 -3,581 -45,059 -1,707 – -80,566

Amortisationchargefortheperiod -939 -5,559 -431 -3,814 -139 – -10,883

Disposals – 4,870 35 432 142 – 5,479

Impactofchangesinforeignexchangerates 110 22 7 83 56 – 278


Othermovements – – 55 -55 – – –

AT31DECEMBER2020 -8,859 -22,855 -3,915 -48,412 -1,648 – -85,690

NETVALUEAT31DECEMBER2020 820 13,116 234 11,274 871 19,499* 45,814

Including€7.2millionindevelopmentexpensesinprogress.*

€thousands

Allocatedintangible

assets

Develop-mentcosts

Patentsand

brands

Software Otherintangible

assets

Inprogress

andadvance

payments

Total

Grossvalueat1January2019 9,789 48,957 4,244 53,588 2,061 5,799 124,437

Acquisitions – – 75 1,201 8 10,329 11,613

Disposals – -15,492 -176 -708 – – -16,376

Impactofchangesinforeignexchangerates 1 -1 5 32 2 1 38


Othermovements 1 3,582 1 1,935 323 -5,771 71

AT31DECEMBER2019 9,791 37,045 4,149 56,048 2,393 10,358 119,784

Accumulatedamortisationat1January2019 -7,027 -33,763 -3,304 -41,617 -1,662 – -87,373

Amortisationchargefortheperiod -1,004 -3,975 -441 -4,026 -44 – -9,490

Disposals – 15,507 168 662 – – 16,337

Impactofchangesinforeignexchangerates 1 1 -4 -23 – – -26


Othermovements – 41 – -55 – – -14

AT31DECEMBER2019 -8,030 -22,188 -3,581 -45,059 -1,707 – -80,566

NETVALUEAT31DECEMBER2019 1,761 14,857 568 10,989 686 10,358* 39,219

Including€5.9millionindevelopmentexpensesinprogress.*

DevelopmentexpensesfulfillingthecriteriaofIAS38arecapitalisedanddeemedasinternally-generatedintangibleassets.At31December2020,thegrossvalueoftheseassetswas€43.2million,ofwhich€7.2millionwasinprogressandthenetvaluewas€20.4million.



Inadditiontocapitalisedexpenses,theamountofresearchanddevelopmentexpensesrecognisedduringtheyearwas€103.3million.Therearenocontractualcommitmentstopurchaseintangibleassets.Net intangible assets recognised in the context of business combinations at 31December 2020 comprised €0.1million in customerrelationshipsand€0.7millionincapitalisedresearchanddevelopmentexpenses(€0.2millionand€1.5millionrespectivelyat31December2019).Amidthehealthcrisis,noindicatorsofimpairmentwereidentifiedthatwouldhaveresultedinimpairmentlossesbeingrecognisedagainstcertainintangibleassets.

PROPERTY,PLANTANDEQUIPMENTNOTE5.3

Except for business combinations, PPE assets are recorded attheir acquisition or production cost, which includes thepurchase price and all costs necessary to make the assetsoperational.Currentmaintenancecostsarerecognisedasexpenses for thefinancialyear.Straight-line depreciation is used based on the followingaverageusefullives:

buildings:20to30years;–machineryandtools:5to10years;–transportvehicles:3to5years;–officefurnitureandequipment:5to10years;–fittingsandfixtures:8to10years.–

Taking account of the nature of PPE held by the Group, nosignificantcomponentwasidentified.Subsequent expenditures may be capitalised if they complywith asset recognition criteria, as defined by IAS16, inparticular if it isprobablethatthefutureeconomicbenefitsofthe asset will flow to the company. These criteria areconsideredpriortoincurringthecost.Asset residual values, useful lives and asset depreciation arereviewed,andamendedifnecessary,attheendofeachyear.PPErecoverableamountsarereviewedwheneventsorchangesin circumstances indicate that the book value may not berecovered.PPEarederecognisedatdisposalorwhenno futureeconomicbenefitisexpectedfromtheiruseordisposal.Anyprofitorlossresulting fromthederecognitionofanasset (measuredas thedifferencebetweenthenetproceedsofthesaleandthebookvalueoftheasset)is includedintheincomestatementfortheyearinwhichtheassetisderecognised.

PRINCIPLESAPPLICABLETOLEASES(IFRS16)The Group mainly holds property leases covering Somfy’svarious locations around the world and vehicle leases. TheGrouphasanumberofindustrialorITequipmentleasesoflesssignificance.

thedateoftheleaseagreement.Thisistherateofinterestthelessee would have to pay to borrow the funds needed toacquiretheassetoverasimilartermandinasimilareconomicenvironment.

Leases are recognised in the balance sheet with effect fromtheir inception date at the present value of future payments(mainlyfixed)basedonthelessee’smarginalborrowingrateat

Leases are recognised under “lease liabilities”, with acorresponding entry on the asset side under “rights of use inrelation to leases”, with each item stated in the relevantcategory of underlying asset. PPE financed through leases aredepreciated over the same periods as PPE acquired outrightwheretheGroupexpectstogainownershipoftheassetattheexpiry of the contract. If not, the asset is depreciated on thebasis of the shorter period of the asset useful life and thedurationofthelease.Intheincomestatement,depreciationisrecognisedwithin theoperatingmargin and interest expensesin net financial income/(expense). The tax impact of thisconsolidation adjustment is taken into account through therecognitionofdeferredtaxes.The lease term is defined on a case-by-case basis andcorrespondstotheenforceableperiodofthe leasetaking intoaccountanyoptionalperiodsthatarereasonablycertaintobeexercised. The Group applies IFRIC provisions over theenforceabledurationoftheleases.The right-of-use asset will in some cases be subject toadjustment when the lease liability is remeasured (e.g. whenthereisachangeofindexorinterestrate,theleaseisextendedor terminated or a substantially fixed lease payment isreviewed), and its valuewill be regularly revised down in theeventofimpairmentlosses.Leasescorresponding toassetsof lowunitvalue (US$5,000orless) and those whose term is short (12months or less) arerecogniseddirectlyinoperatingexpenses.Leasesrelatingto low-valueassetsmainlyconcernsmall itemsofITequipment.Until1January2019,onlythoseleasesclassedasfinanceleaseswere recognised – i.e.those that transferred substantially alltherisksandrewardsofownershiptothelessee,inaccordancewith IAS17. Such leases continued to be recognised followingtheadoptionof IFRS16on1January2019.Leasesclassifiedasoperating leaseswere not restated and lease paymentswererecognisedasexpensesforthefinancialyear.



€thousands

Land Buildings Right-of-use

Landand

buildings

Plant,machi-neryandtools

Right-of-use

Plant,machi-

neryandtools

Otherproperty,

plantand

equip-ment

Right-of-use

Otherproperty,

plantand

equip-ment

Inprogress

andadvance

payments

Total

Grossvalueat1January2020 16,623 150,903 71,505 293,647 1,178 69,136 10,998 19,355 633,344

Newright-of-useassets – – 10,067 – 193 – 5,015 – 15,275

Acquisitions – 947 – 6,424 – 3,067 – 22,260 32,699

Disposals -5 -701 -2,247 -12,276 -179 -5,358 -2,274 – -23,040

Impactofchangesinforeignexchangerates -393 -1,392 -1,556 -2,829 -2 -1,363 -242 -254 -8,031

Impactofchangesinconsolidationscopeandmethod – – – – – – – – –

Othermovements 684 15,346 -14,721* 17,140 – 959 – -19,408 –

AT31DECEMBER2020 16,908 165,103 63,047 302,106 1,190 66,441 13,497 21,953 650,246

Accumulateddepreciationat1January2020 -1,227 -79,077 -17,216 -186,063 -290 -48,120 -4,037 – -336,030

Depreciationchargefortheperiod -252 -6,021 -9,187 -22,520 -337 -6,784 -4,490 – -49,591

Disposals 1 649 1,569 11,206 180 5,158 1,996 – 20,760

Impactofchangesinforeignexchangerates 64 131 447 1,311 – 838 80 – 2,872


Othermovements – -7,428 7,436 -955 – 947 – – –

AT31DECEMBER2020 -1,414 -91,746 -16,951 -197,020 -446 -47,961 -6,451 – -361,989

NETVALUEAT31DECEMBER2020 15,494 73,357 46,096 105,086 744 18,481 7,045 21,953 288,257

Exerciseofoptionforalandandbuildinglease.*

At31December2020,uncapitalised leaseexpenses relating toservicesandshort-termor low-value leasesarebrokendownas follows:€1.2millioninrespectofpropertyleaseexpenses,€1.4millioninrespectofvehicleleaseexpensesand€0.9millioninrespectofotherleaseexpenses.Covid-19-related rent concessions were not material. They are recognised in the income statement as a negative variable rent inaccordancewiththeamendmenttoIFRS16.Since2019,theGrouphasappliedIFRICprovisionsovertheenforceabledurationoftheleases.Amidthehealthcrisis,noindicatorsofimpairmentwereidentifiedthatwouldhaveresultedinimpairmentlossesbeingrecognisedagainstcertainitemsofproperty,plantandequipment.



€thousands

Land Buildings Right-of-use

Landand

buildings

Plant,machi-neryandtools

Right-of-use

Plant,machi-

neryandtools

Otherproperty,

plantand

equip-ment

Right-of-use

Otherproperty,

plantand

equip-ment

Inprogress

andadvance

payments

Total

Grossvalueat1January2019 22,710 161,468 – 278,180 – 67,182 – 22,187 551,726

ImpactoftheapplicationofIFRS16from1January2019 – – 34,523 – 420 – 7,162 – 42,105

Newright-of-useassets – – 13,955 – 816 – 4,367 – 19,138

Acquisitions 250 1,232 – 7,274 – 4,532 – 27,759 41,047

Disposals -47 -2,158 -666 -12,502 -65 -6,305 -677 – -22,420

Impactofchangesinforeignexchangerates 76 317 388 430 1 518 42 48 1,820


Othermovements -6,366 -9,956 23,305 20,265 6 3,209 104 -30,638 -71

AT31DECEMBER2019 16,623 150,903 71,505 293,647 1,178 69,136 10,998 19,355 633,344

Accumulateddepreciationat1January2019 -965 -83,380 – -176,376 – -47,106 – – -307,828

Depreciationchargefortheperiod -254 -5,505 -9,419 -21,640 -322 -6,870 -4,518 – -48,528

Disposals 1 1,763 367 12,100 38 6,202 526 – 20,997

Impactofchangesinforeignexchangerates -9 -121 -13 -206 – -329 -6 – -685


Othermovements – 8,167 -8,151 59 -6 -16 -39 – 14

AT31DECEMBER2019 -1,227 -79,077 -17,216 -186,063 -290 -48,120 -4,037 – -336,030

NETVALUEAT31DECEMBER2019 15,396 71,826 54,289 107,584 888 21,016 6,961 19,355 297,314

In2019,theimpactofIFRS16adoptionwitheffectfrom1January2019onproperty,plantandequipmentis€42.1million.Othermovementsinleasedassetsalsoincludethereclassificationat1January2019offinanceleasesrestatedunderIAS17,consistingoflandandbuildingswithagrossvalueof€23.3millionand€8.2millioninassociatedaccumulateddepreciation.At31December2019,uncapitalised leaseexpenses relating toservicesandshort-termor low-value leasesarebrokendownas follows:€1.6millioninrespectofpropertyleaseexpenses,€1.6millioninrespectofvehicleleaseexpensesand€1.0millioninrespectofotherleaseexpenses.

Thereisnosignificantproperty,plantandequipment(buildings,machineryandtools)incontinuinguse,withanetbookvalueofzero.Therearenocontractualcommitmentstopurchaseproperty,plantandequipment.



EQUITYANDEARNINGSPERSHARENOTE6—

EQUITYNOTE6.1

TransactionsbetweenshareholdersNote6.1.1

Intheeventofacquisitionofadditionalinterestsinasubsidiary,the difference between the price paid and the book value ofnon-controlling interests acquired and any related acquisitioncosts is recognisedasa reductionof theGroup’s consolidatedshareholders’ equity, and vice versa in case of disposal ofinterestswithoutlossofcontrol.

Note6.1.2Treasuryshares

TheGroupholdstreasurysharesforthefollowingpurposes:tostimulatethesecondarymarketorensuretheliquidityof–the Somfy SA share, by way of an investment servicesprovider within a liquidity contract that complies withpracticesrecognisedbyregulations;to retain the shares purchased and subsequently exchange–them or use them as payment within the framework ofpotentialacquisitions;to ensure the coverage of stock option plans and/or free–share allocation plans (or similar) granted to employeesand/or corporate officers of theGroup, aswell as all othersharesallocatedunderacompanyorgroupsavings scheme(orsimilar),inrelationtoemployeeprofit-sharingand/oranyother form of allocation to employees and/or corporateofficersoftheGroup;tocovermarketablesecuritiesgivingrighttotheallocationof–companyshares,inaccordancewithapplicableregulations;toproceedwiththepossiblecancellationofsharesacquired.–

TreasurysharesdirectlyheldbytheGrouporthroughaliquiditycontractarerecognisedasareductionfromequity.Ontheirdisposal,theconsiderationreceivedforthedisposaloftreasury shares is directly recognised as an increase ofGroupequity,nogainor loss is thus recognised innetprofit/loss forthefinancialyear.

ProposeddividendsNote6.1.3

31/12/20 31/12/19

Totalnumberofshares 37,000,000 37,000,000

Treasuryshares 2,616,125 2,616,647

Parvalue €0.20 €0.20

Proposeddividends €1.85 €1.25*

* Dividend amount revised downwards at the General Meetingof24June2020.

The voting right attached to shares is proportional to the capitalthattheyrepresent.Eachsharecarriestherighttoasinglevote.Certainsharesareentitledtoadoublevotingright,providingtheyarefullypaidupandhavebeenregisteredinnominativeformforatleastfouryearsinthenameofthesameshareholderattheendofthecalendaryearprecedingeachGeneralMeeting.

EARNINGSPERSHARENOTE6.2

Net earnings per share is calculatedby dividing thenet profitfor the financial period by the average number of shares inissueovertheperiodnetoftreasurysharesheld.Only treasury shares held by the Group and allocated at theclosing to stock options plans or free shares allocationsguarantee a dilutive effect on the calculation of dilutedearnings per share. The Group has not issued any securitiesgivingfutureaccesstocapital.

Basicearningspershare 31/12/20 31/12/19

Netprofit-Groupshare(€thousands) 213,008 163,227

Totalnumberofshares(1) 37,000,000 37,000,000

Treasuryshares*(2) 2,616,125 2,616,647

Numberofsharesusedincalculation(1)-(2) 34,383,875 34,383,353

BASICEARNINGSPERSHARE(€) 6.19 4.75

RepresentingalltreasurysharesheldbySomfySA.*

Dilutedearningspershare 31/12/20 31/12/19

Netprofit-Groupshare(€thousands) 213,008 163,227

Totalnumberofshares(1) 37,000,000 37,000,000

Treasuryshares**(2) 2,551,620 2,558,969

Numberofsharesusedincalculation(1)-(2) 34,448,380 34,441,031

DILUTEDEARNINGSPERSHARE(€) 6.18 4.74

Freesharesareexcluded.**

Dilutedearningspersharetakeintoaccountsharesallocatedfreeof charge in determining the “number of shares used incalculation”.



FINANCIALITEMSNOTE7—

NETFINANCIALINCOME/(EXPENSE)NOTE7.1

Net financial income/(expense) comprises the following twoitems:

costofnetfinancialdebt–Includesallincome/expensefromnetfinancialdebtorfinancialsurplusconstituentsover theperiod, including income/lossoninterestratehedges;

otherfinancialincomeandexpenses.–These include income and expenses of a financial nature butneitherofanoperationalnaturenoraconstituentofthecostofnetfinancialdebt.

€thousands 31/12/20 31/12/19

Costofnetfinancialdebt -2,281 -1,995

Financialincome–frominvestments 947 1,313

Financialexpensesrelatedto–borrowings -3,228 -3,308

Ofwhichfinancialcharges●relatedtoIFRS16 -934 -1,064

Effectofforeigncurrencytranslation -6,242 -3,730

Other 3,409 660

NETFINANCIALEXPENSE -5,114 -5,066

Netfinancialexpensewas€5.1millionfortheyearto31December2020, unchanged from 2019. This stabilitywasmainly due to anincrease in unrealised exchange rate losses on foreign currencyreceivables andpayables (BRL, TRY andUSD in particular), partlyoffset by a higher reversal of the provisions onGaren’s financialassets (€2.3million in 2020 compared with €1.0million in 2019)and thecancellationof the€1.4millionearnout related toSomfyProtectbyMyfoxduetofailuretomeeteligibilitycriteria.

FINANCIALASSETSANDLIABILITIESNOTE7.2

FinancialassetsNote7.2.1

Financial assets are classified into the following categoriesbased on the asset ownership business model and thecharacteristicsofitscontractualcashflows:

assetsmeasuredatamortisedcost;–assets measured at fair value through items of other–comprehensiveincome;assetsmeasuredatfairvaluethroughtheincomestatement.–

Financialassetsareinitiallyrecognisedathistoricalcost,whichcorrespondstothefairvalueofthepricepaid,plustransactioncosts, with the exception of assets measured at fair valuethrough the income statement, whose transaction costs arerecognisedintheincomestatement.

ASSETSMEASUREDATAMORTISEDCOSTFixed income securities purchased with the intent of holdingthem until maturity are classified in this category. They aremeasured at amortised cost using the effective interest ratemethod.Amortisedcostismeasuredbytakingintoaccountanydiscount received or premium paid at acquisition, over theperiod running from the acquisition to the maturity date.Profitsandlossesarerecognisedintheincomestatementwhenassets are derecognised or their value is impaired. The sameappliestowritedowncharges.Thiscategoryalso includesdepositsandguaranteesandothernon-current receivables, trade receivables, certain othercurrentreceivablesandcashandcashequivalentsnotclassifiedasassetsheldfortrading(termdeposits).Theyaremeasuredatamortised cost using the effective interest rate method.Long-term loans and receivables, non-interest bearing orbearing a lower interest rate than market interest rate, arediscounted if amounts are significant. Potential impairmentlossesarerecognisedintheincomestatement.Inaddition,writedownchargesareestablishedwhenthereisanobjectiveindicationthatthevalueoftheassetmayhavebeenimpaired as a result of an event arising after its initialrecognition.Thisaccountprimarilycomprisesguaranteesanddepositspaidtovariouslenders.

ASSETSMEASUREDATFAIRVALUETHROUGHITEMSOFOTHERCOMPREHENSIVEINCOMEORTHROUGHTHEINCOMESTATEMENTGroup investments in companies over which it neither hascontrol, nor significant influence, nor joint control, arerecognisedasfinancialassetsmeasuredatfairvalueaccordingtotwopossibleaccountingtreatments:

changes in fair value are recognised in Items of Other–comprehensive income in the statement of comprehensiveincome, and inOther reserves in shareholders’ equity,withnopossibilityof transferring themto the incomestatementintheeventofdisposal.Inthelattercase,onlydividendsarerecognisedintheincomestatement;changesinfairvalue,aswellasthedisposalgainorlossare–recognisedintheincomestatement.

Thechoicebetweenthesetwomethodsmustbemadeforeachinvestmentfrominitialrecognitionandisirreversible.Assets held for trading purposes,meaning assets acquired bythecompanywithaviewtodisposeofthemintheshort-term,are measured at fair value and fair value movements arerecognisedintheincomestatement.In particular, marketable securities complying with thedefinitionof financial assetsheld for transactionpurposesaremeasured at fair value at year-end and recognised as currentfinancial assets. fair value variances are recognised in theincomestatement.



€thousands

Equityinvestments

Loans Depositsand

guarantees

Other Currentand

non-currentfinancialassets

Realisablewithin1year

Non-currentfinancialassets

At1January2020 1,959 285 2,447 3 4,693 477 4,216

Increase 547 – 139 – 686 – 686

Decrease -577 -830 -526 – -1,934 -1,357 -577

Netchangeinimpairment 1 2,327 – – 2,328 – 2,328

Impactofchangesinforeignexchangerates – -1,974 -74 – -2,048 -18 -2,030


Fairvaluerecognisedinitemsofothercomprehensiveincome – – – – – – –

Othermovements – 334 – – 334 1,303 -970

AT31DECEMBER2020 1,929 142 1,986 3 4,060 406 3,653

Non-currentfinancialassets 1,929 84 1,640 – 3,653 – –

Currentfinancialassets – 58 345 3 406 – –

Financialassetsrealisablewithinoneyearmainlycompriseshort-termdeposits.

FinancialliabilitiesNote7.2.2

BORROWINGSANDBORROWINGCOSTSUpon initial recognition, loans and other interest-bearing debts aremeasured at fair value, increased by transaction costs that aredirectlyattributabletotheissuanceoftheliability.Fairvaluegenerallyequalstheamountofcashreceived.Issuing charges and premiums are taken into consideration in measuring amortised cost according to the effective rate method.Therefore,theyarerecognisedintheincomestatementonanactuarialbasisoverthedurationoftheliability.Interestonloansisrecognisedasanexpenseoftheperiod.



AnalysisbycategoryNote7.2.2.1

€thousands

Borrowingsfromcredit

institutions

Leaseliabilities

Otherborrowings

andfinancialliabilities

Totalliabilities

fromfinancingactivities

Bankoverdrafts

Currentand

non-currentfinancialliabilities

Duewithin1year

Non-currentfinancialliabilities

At1January2020 924 51,998 23,018 75,940 1,357 77,297 32,267 45,030

Increaseinloans – – 427 427 – 427 68 359

Repaymentofborrowingsandleaseliabilities -325 -14,134 – -14,459 -3,431 -17,890 -18,830 940

Othermovementsrelatedtobusinessacquisitions – – -769 -769 – -769 -769 –

Totalcashmovements -325 -14,134 -342 -14,801 -3,431 -18,232 -19,531 1,299

Impactoftherevaluationofputoptions – – -442 -442 – -442 – -442

Impactofchangesinforeignexchangerates – -1,359 -31 -1,390 2,480 1,090 2,172 -1,082

Newleaseliabilities – 15,271 – 15,271 – 15,271 – 15,271

Adjustmentstoleaseliabilitieswithnocashimpact – -983 – -983 – -983 – -983

Impactofchangesinconsolidationscopeandmethod – – -3 -3 – -3 1 -4

Othermovements – -1 -2,649 -2,651 – -2,651 15,908 -18,559

Totalnon-cashmovements – 12,928 -3,125 9,803 2,480 12,283 18,081 -5,799

AT31DECEMBER2020 599 50,792 19,551 70,942 405 71,348 30,817 40,531

Non-currentfinancialliabilities 274 38,143 2,114 40,531 – 40,531 – –

Currentfinancialliabilities 325 12,649 17,437 30,411 405 30,817 – –

OtherborrowingsandfinancialliabilitiesmainlyincludethefairvalueoftheputoptiongrantedtotheDooyapartners,theamountofwhichisequaltothedifferencebetweentheestimatedcontractualvaluethatwouldresultfromtheexerciseoftheputoptionandthefairvalueoftheportioncorrespondingtotheunderlyingassets.Theamountofthisliabilityderivativeremainsstableat31December2020and2019at€16.6million.Thebalanceofotherborrowingsandfinancialliabilitiesincludethedebtrelatingtotheputoptionsgrantedtotheholdersofnon-controlling interests,whosevariationsare recognised inequity, and toearnouts,whosevariationsare recognised in the incomestatement.



AnalysisbymaturityNote7.2.2.2

€thousands 31/12/20 31/12/19

1yearorless 30,817 32,267

Between1and5years 29,095 32,535

5yearsormore 11,436 12,495

TOTAL 71,348 77,297

Thematurity profile of non-discounted anddiscountedminimumpaymentsonleasesisasfollows:

€thousandsUndiscounted2020liability

Discounted2020liability




TOTAL 54,134 50,792

€thousandsUndiscounted2019liability

Discounted2019liability




TOTAL 55,959 51,998

AnalysisbyrateNote7.2.2.3

€thousands 31/12/20 31/12/19

Variablerate 3,481 4,883

Fixedrate 40,537 41,091

Non-interestbearing 27,330 31,323

TOTAL 71,348 77,297

Non-interest-bearingfinancialliabilitiesmainlyincludeputoptionsgrantedtoholdersofnon-controllinginterestsandearnouts.

AnalysisbycurrencyNote7.2.2.4

€thousands 31/12/20 31/12/19

Euro 33,241 38,027

Other 38,107 39,270

TOTAL 71,348 77,297

SecuredliabilitiesNote7.2.2.5TheGrouphadno liabilitiessecuredbycollateralat31December2020.

CovenantsNote7.2.2.6At 31December 2020, Somfy SA had a total of €174.0millionundrawnmedium-termloanfacilities(confirmedcreditlines)withseven banks. Fundsmade available by the credit institutions aresubject to Somfy SA commitment to comply with financialcovenants based on theGroup’s financial structure (net financialdebt/shareholder’s equity) and its ability to repay (net financialdebt/EBITDA). Somfy SA was in compliance with all of thesecovenantsat31December2020.Somfy SA also had undrawn overdraft facilities totalling€45.0millionat31December2020.

AnalysisofnetfinancialdebtNote7.2.3

Thenetfinancialdebtisdefinedinnote4.3.4.

€thousands 31/12/20 31/12/19

Financialliabilitiesincludedinnetfinancialdebtcalculation 71,348 77,297

Ofwhichliabilitiesrelatedtolease–agreements(IFRS16) 50,792 51,998

Financialassetsincludedinnetfinancialdebtcalculation 142 285

Marketablesecurities– – –

Loans– 142 285

Miscellaneous– – –

Cashandcashequivalents 588,925 387,547

NETFINANCIALDEBT -517,719 -310,535

Liabilitiesrelatedtoputoptionsandearnouts 19,137 23,015

RESTATEDNETFINANCIALDEBT -536,856 -333,550

Netfinancialsurplus.(-)



ClassificationandfairvalueoffinancialinstrumentsNote7.2.4

DERIVATIVEFINANCIALINSTRUMENTSAllderivative financial instrumentsaremeasuredat their fair value. Fair value iseither themarketvalue for listed instruments,oravalueprovidedbyfinancialinstitutionsinaccordancewithusualcriteria(over-the-countermarket).Derivative financial instrumentsprimarily compriseoptions related tobusinessacquisitions, forward foreignexchangecontracts, rawmaterialhedgingcontractsandinterestrateswaps.Forderivativesdesignatedascashflowhedgeinstruments,theeffectiveportionoffairvaluemovementsofthederivativesisrecognisedinitemsofothercomprehensiveincomeandaccumulatedinthehedgingreserve.Anyineffectiveportioninthefairvaluemovementofderivativesisimmediatelyrecognisedthroughnetprofit.Thefairvaluemovements inforeigncurrency,rawmaterialand interestratehedging instruments ineligibleforhedgeaccountingarerecognisedinnetfinancialincome/expense.The fair value of derivative instruments is recognised in the balance sheet under specific items: “current and non-current assetderivativeinstruments”or“currentandnon-currentliabilityderivativeinstruments”dependingonthenatureofthehedgedgood.

FAIRVALUEOFFINANCIALINSTRUMENTSFairvaluemeasurementsarespecifiedbylevelinaccordancewiththefollowingfairvaluehierarchy:

theinstrumentisquotedonanactivemarket(Level1);–measurementrequirestheuseofvaluationtechniquesdrawingonobservabledata,eitherdirectly(prices)or indirectly(asderived–fromprices)(Level2);atleastonesignificantcomponentoffairvalueisbasedonnon-observabledata(Level3).–

Thefairvalueoffinancialinstrumentstradedinactivemarketsisbasedonquotedmarketpricesatthebalancesheetdate.Amarketisregardedasactive ifquotedpricesare readilyand regularlyavailable fromanexchange,dealer,broker,pricing serviceor regulatoryagency,andthosepricesrepresentregularlyoccurringmarkettransactions.TheseinstrumentsareclassifiedasLevel1.Thefairvaluesoffinancialinstrumentsthatarenottradedinanactivemarket(e.g.over-the-counterderivatives)aredeterminedusingvaluationtechniques.Thesedifferentvaluationtechniquesmaximisetheuseofobservablemarketdata,whereavailable,andrelylittleontheGroup’sestimates.TheinstrumentisclassifiedasLevel2ifallelementsrequiredtocalculatethefairvalueofaninstrumentareobservable.Ifoneormoreoftheprincipalpricingelementsisnotbasedonobservablemarketprices,theinstrumentisclassifiedasLevel3.

€thousands

Amountat31December

2020

Assetsandliabilitiesat

amortisedcost(1)

(Fairvalueequaltonetbookvalue)

Financialassetsandliabilities

(2)(Fairvalue

recognisedinitemsofothercomprehensive

income)


(3)(Fairvalue

recognisedinincome

statement)

Fairvaluehierarchy

(2&3)

Assets

Non-currentfinancialassets 3,653 1,724 1,929 – Level3

Currentfinancialassets 406 406 – –

Currentderivativeinstruments 657 – 657 – Level2

Cashandcashequivalents 588,925 588,840 – 85 Level2

Liabilities

Non-currentfinancialliabilities 40,531 38,763 1,768 – Level3

Currentfinancialliabilities 30,817 13,448 – 17,369 Level3

Currentderivativeinstruments 554 – 276 278 Level2



€thousands

Amountat31December

2019

Assetsandliabilitiesat

amortisedcost(1)

(Fairvalueequaltonetbookvalue)


(2)(Fairvalue

recognisedinitemsofothercomprehensive

income)


(3)(Fairvalue

recognisedinincome

statement)

Fairvaluehierarchy

(2&3)

Assets

Non-currentfinancialassets 4,216 2,258 1,959 – Level3

Currentfinancialassets 477 477 – –

Currentderivativeinstruments 160 – 160 – Level2

Cashandcashequivalents 387,547 387,474 – 73 Level2

Liabilities

Non-currentfinancialliabilities 45,030 40,009 2,227 2,794 Level3

Currentfinancialliabilities 32,267 14,273 – 17,994 Level3

Non-currentderivativeinstruments 511 – 328 183 Level2

Thenetbookvalueofcurrentassetsandliabilitiesisdeemedtobeareasonableapproximationoftheirfairvalueduetotheirshort-termnature.Forvariablerateborrowingsanddebt,netbookvalueisdeemedtobeareasonableapproximationoftheirfairvalue.Thefairvalueofderivativeinstrumentsandcashequivalentsisestablishedwithreferencetoobservablemarketdata(Level2).Non-consolidatedequityinstruments,aswellasearnoutsandoptionsrelatedtobusinessacquisitionsaremeasuredattheirbalancesheetfairvalue,basedinparticularonthefutureearningsprospectsofthebusinessesacquired(Level3).Therehasbeennochangeinthemethodofdeterminingfairvalueforanycategoryduringtheperiod.

CashandcashequivalentsNote7.2.5

Cashincludesbankbalances(bankassetsandoverdrafts)andcashinhand.Cashequivalentsareshort-termandveryliquiddeposits,easilyconvertibleintoaknownamountofcashandsubjecttoanegligibleriskofunfavourablechangeinvalue.

€thousands 31/12/20 31/12/19

Cash 439,460 253,874

Cashequivalents 149,464 133,673

CASHANDCASHEQUIVALENTS 588,925 387,547

Cashequivalentsaremainlyinterest-bearingcurrentaccountsandtermdepositswithmaturitiesoflessthanthreemonths.



FINANCIALRISKMANAGEMENTPOLICYNOTE7.3

Foreignexchangerisk

Somfy’s exposure to foreign exchange risk is primarily related to its operational activities (intragroup sales of manufactured productsdistributed by commercial subsidiaries outside the Euro zone, these sales being denominated in local currencies and purchasesdenominatedinlocalcurrencies).Almost70%ofconsolidatedGroupsalesweregeneratedintheEurozoneintheyearto31December2020,unchangedfrom31December2019.Foreigncurrencydenominatedassetsrepresent11.5%oftotalassetsat31December2020,comparedwith12.8%at31December2019.Consequently,avariationinforeignexchangerateswouldnothaveasignificanteffectontotalassets.Atcomparabletermsandconditions,theGroupgivesprioritytonaturalhedges(foreigncurrencypurchasesrelatedtosales inthesamecurrency).Thederivativefinancialinstrumentsputintoplaceareforwardforeignexchangecontractsforthemaincurrencies.TheGroup isvigilant in itsassessmentoftheriskrelatedtoforeignexchangewithinamarketenvironmentthat ischallenging.Currencyhedgingcontinuestobeadaptedinlinewithforecastsandmarkettrends.Since1July2010, theGrouphasbeenapplyinghedgeaccounting to foreigncurrencyhedging instruments.Theeffectiveportionof fairvaluemovements is therefore taken to items of other comprehensive income and the ineffective portion is recognised in net financialincome/(expense).Foreignexchangehedgesareadaptedinlinewithforecasts.Theimpactoftheeffectiveportionofhedgesat31December2020wasnilonitemsofothercomprehensiveincomeandwasnotmaterialon profit and loss (transfer) at a negative €0.1million. Since indirect exposure to exchange rate fluctuations is low, implementation ofamendmentstoIFRS9,IAS39andIFRS7(IBORreform)willhavenomaterialimpactonthehedginginstrumentsused.Theineffectiveportionofhedgeswasnilat31December2020and2019.

Foreignexchangehedgesbycurrency

31/12/20€thousands

Contractnominalvalue

Nettotal FairvalueSales Purchases

AUD 7,367 – 7,367 -186

CAD 3,262 – 3,262 7

CHF 4,073 -1,203 2,870 43

CNY – -17,451 -17,451 262

CZK – -4,001 -4,001 29

GBP 10,122 -4,173 5,949 -28

HKD 809 -347 462 27

HUF 409 – 409 -1

ILS 3,929 – 3,929 -29

JPY 2,925 – 2,925 25

MXN 1,028 – 1,028 -35

NOK 2,407 – 2,407 -118

PLN 2,522 – 2,522 -5

RON 565 – 565 -7

RUB 1,181 – 1,181 -21

SEK 2,173 – 2,173 -98

SGD 1,535 -247 1,289 -2

THB 381 – 381 -3

TRY 2,271 – 2,271 -70

USD – -8,475 -8,475 -342

46,961 -35,897 11,064 -554






AUD 3,032 – 3,032 2

CAD 2,877 – 2,877 -1

CHF 6,541 – 6,541 -105

CNY – -15,472 -15,472 236

CZK – -4,762 -4,762 95

GBP 8,486 – 8,486 -576

HKD 1,623 -915 709 -9

HUF 197 – 197 –

ILS 4,763 -940 3,823 -90

JPY 4,084 -246 3,838 66

MXN 1,051 -113 938 -49

NOK 831 -233 598 22

PLN 3,641 -2,608 1,034 -17

RON 165 – 165 –

RUB 1,021 – 1,021 -39

SEK 2,680 -57 2,623 -56

SGD 1,999 – 1,999 -29

THB 560 – 560 -21

TRY 1,436 -165 1,272 -55

USD 2,225 -12,996 -10,771 113

ZAR – -24 -24 –

47,213 -38,531 8,682 -511

Foreignexchangehedgesbytype




FairValueHedges 13,103 -9,056 4,047-554

CashFlowHedges 33,858 -26,842 7,016

NetInvestmentHedges – – – –

Trading – – – –

46,961 -35,897 11,064 -554








47,213 -38,531 8,682 -511



Interestraterisk

The Group is exposed to interest rate risks.Management of theinterest rate relative to Group debt is based on consolidatedpositionandmarketconditions.TheprimaryobjectiveoftherateriskmanagementpolicyistocontrolGroupfinancingcosts.The majority of the Group companies’ financial liabilities is atvariablerate.The Group applies hedge accounting to interest rate hedgeinstruments. The effective portion of fair value movements isthereforetakento itemsofothercomprehensive incomeandtheineffectiveportionisrecognisedinnetfinancialincome/(expense).The Group did not use any interest-rate hedging instrumentsduringthe2020financialyear,aswasalsothecasein2019.

Liquidityrisk

TheGroupmusthavepermanentaccesstothenecessaryfinancialresources to allow it to finance its day-to-day activities and itsinvestments. The Group’s liquidity risk primarily arises from theobligation to repay its existing debt, the funding of its futurerequirementsandobservanceofitsfinancialratios.The granting of credit facilities is subject to Somfy SA’scommitments to its banking partners to comply with financialcovenants.TheGrouphas specifically reviewed its liquidity risk andbelievesthatitisinapositiontomeetitsfuturecommitments,particularlythose falling due in the next 12months, despite the uncertaineconomicenvironmentstemmingfromthehealthcrisis.External Group financing essentially relies upon leases andmedium-termcreditfacilities.Some debts are subject to compliance with covenants. Thecovenantsaredetailedinnote7.2.2.6.The Group does not finance itself using revolving loans,securitisationorreversefactoring.The Group has access to both confirmed and unconfirmed(overdrafts) medium-term bank facilities, which are undrawn todate(seenote7.2.2.6).

Creditrisk

TheGroup’s exposure to credit risk is related to its cash surplusdepositedwithbanks.Given the composition of its marketable securities portfolio(interest-bearing current accounts and term deposits) and thecreditriskofitsmainbankingpartners,whichareratedbetweenAandA+,theGroup’sexposuretoinvestmentriskislowbutmustbeclosely monitored given the uncertain economic environmentstemmingfromthehealthcrisis.

Rawmaterialrisk

The Group is exposed to fluctuations in the price of the rawmaterialsusedinthemanufactureofitsproducts(copperandzincinparticular).Tomaintainitsprofitability,theGroupmustbeabletocoverfororoffsetthisriskorpassitontoitscustomers.TheGroup has nevertheless implemented procedures to limit itsexposuretorisksrelatedtochangesinrawmaterialprices.Somfyprotectsagainstfluctuationsinthepriceofrawmaterialbyplacingfirmorderswithitssuppliers(physicalhedges forcopper)andviahedgingagreementsformaterialsonthefinancialmarkets(copper and zincpaper hedging) on components that cannot bephysicallyhedged.The Group is vigilant in its assessment of the risk related to thesupply of raw materials and electronic components within amarket environment that is challenging. Raw material hedgingcontinuestobeadaptedinlinewithforecastsandmarkettrends.InaccordancewithIFRS9,theGroupisinapositiontoapplyhedgeaccounting to a material component of a non-financial item. Assuch,theeffectiveportionoffinancialinstrumentsimplementedisthereforetakento itemsofothercomprehensive incomeandtheineffectiveportionisrecognisedinnetfinancialincome/(expense).Rawmaterialhedgesareadaptedinlinewithforecasts.The positive impact of efficient hedges on items of othercomprehensive income was €0.4million net of deferred tax at31December 2020. The ineffective portion of hedges was nil at31December2020and2019.

31/12/20

Tonnes Hedgingofoff-balancesheetitems€thousands

Fairvalue€thousands

Types

Copper 170 830 250 Swap

Zinc 1,300 2,520 407 Swap

1,470 3,350 657

31/12/19

Tonnes Hedgingofoff-balancesheetitems€thousands


Types

Copper 700 3,584 230 Swap

Zinc 1,760 3,571 -69 Swap

2,460 7,155 160



ANALYSISOFCASHFLOWSTATEMENTNOTE8—Thecashflowstatementispreparedusingtheindirectmethod:thismethodpresentsthereconciliationofnetprofitwiththenetcashgenerated by operations over the year. Cash and cash equivalents at the beginning and end of the year include cash and cashequivalents,whichconsistofinvestmentinstruments,lessbankoverdraftsandoutstandingitems.

CASHANDCASHEQUIVALENTSNOTE8.1

€thousands 31/12/20 31/12/19

CASHANDCASHEQUIVALENTSATTHESTARTOFTHEPERIOD 386,190 253,413

Cashandcashequivalentsatthestartoftheperiod 387,547 259,345

Bankoverdrafts -1,357 -5,932

CASHANDCASHEQUIVALENTSATTHEENDOFTHEPERIOD 588,519 386,190

Cashandcashequivalentsattheendoftheperiod 588,925 387,547

Bankoverdrafts -405 -1,357

INTANGIBLEASSETSANDPROPERTY,PLANTNOTE8.2ANDEQUIPMENT

Receivables and liabilities related to intangible assets andproperty,plantandequipmentare included in investingactivitiesin the cash flow statement and decreased by €0.6million in theyear ended 31December 2020 compared with a decrease of€1.6millionin2019.During 2020, the Group acquired intangible assets and property,plant and equipment totalling €50.3million, compared with€52.7millionin2019.

Net of cash receipts related to disposals of intangible assets andproperty,plantandequipment,investmentstotalled€49.8millionin2020comparedwith€53.3millionin2019.Newright-of-useassetsandassociatednewleaseliabilitiesarenotconsideredcashflows.

CHANGEINWORKINGCAPITALREQUIREMENTSNOTE8.3

€thousands 31/12/20 31/12/19

Netdecrease/(increase)ininventory -15,120 6,836

Netdecrease/(increase)intradereceivables -261 2,518

Net(decrease)/increaseintradepayables 25,282 -1,419

Netmovementinotherreceivablesandpayables 9,432 6,066

CHANGEINWORKINGCAPITALREQUIREMENTS 19,333 14,001

BUSINESSACQUISITIONSANDDISPOSALS,NOTE8.4NETOFCASHACQUIREDORDISPOSEDOF

As in 2019, net cash flow from acquisitions in 2020 mainlyconsisted of the part-payment of one of the Somfy Protect byMyfoxearnoutsandtheacquisitionofnon-controllinginterestsinBFTGroupItalibericadeAutomatismosSL.

PROVISIONSANDCONTINGENTLIABILITIESNOTE9—

PROVISIONSNOTE9.1

This includescommitmentswithanuncertainmaturitydateoramounts resulting from restructuringoperations, litigationsorotherrisks.A provision is established when the Group has a currentobligation (legal or constructive) resulting from a past eventandwhenfuturecashoutflowscanbemeasuredreliably.The Group is party to a number of litigation and arbitrationproceedings with third parties or with the tax authorities ofcertain countries in the normal course of its business.Provisions are recorded for these proceedings when a legal,contractual or constructive obligation exists at the end of thereportingperiodwithrespecttoathirdparty,itisprobablethatanoutflowof resources embodying economic benefitswill berequiredinordertosettletheobligationwithnoconsiderationin return, and a reliable estimate can be made of thisobligation.Similarly, if the Group has uncertainties concerning the taxtreatment it has adopted in respect of certain events ortransactions,provisionsarerecognisedifitisprobablethattheGroup’staxliabilitieswouldbereassessedintheeventofataxaudit.

detailed and formal plan, which has been announced to thepersonnelaffectedortheirrepresentatives.

A provision for restructuring is recognised when there is anobligationtowardthirdparties,originatingfromaManagementdecision materialised before year-end by the existence of a

WhentheGroupexpectsfullorpartrepaymentofanexpensethatwasthesubjectofaprovision,bywayoftheexistenceofaninsurancecontractforinstance,therepaymentisrecognisedasaseparateassetbutonlyifrepaymentisvirtuallycertain.Theprovisioncharge is takento the incomestatement,netofanyrepayment.In order to cover costs inherent in guarantees given tocustomers, theGroup recognises a provision for charges. Thisprovisionrepresentstheestimatedamount,basedonstatisticsofchargesrecognised in thepast,asa resultof repairsduringthe guarantee period. At each year-end, this provision isreversed for theactual amountof services rendered recordedasexpensesforthefinancialyear.If the impact of the time value of money is significant,provisionsarediscountedonthebasisofarateaftertaxwhichreflectsthespecificrisksoftheliability.Whereaprovision isdiscounted, the increase in theprovisionrelatingtothediscountingisrecordedasanoperatingexpense.



Non-currentprovisionsNote9.1.1

€thousands

Provisionsfor

guarantees

Provisionsforlitigation

Provisionforagents

Provisionsforliabilitiesandcharges

Total2020

At1January2020 5,111 968 465 2,003 8,548

Charges 193 2,124 31 154 2,502

Usedreversals -361 -154 -53 -138 -706

Unusedreversals – -208 – -375 -583

Impactofforeignexchangerates -118 – – 2 -116

Impactofchangesinconsolidationscopeandmethod – – – – –

Othermovements – – – – –

AT31DECEMBER2020 4,825 2,730 443 1,647 9,645

CurrentprovisionsNote9.1.2

€thousands

Provisionsforguarantees

Provisionsforlitigation

Provisionsforliabilitiesand

charges

Total2020

At1January2020 4,889 1,821 4,543 11,253

Charges 508 1,487 1,384 3,378

Usedreversals -701 -113 -1,622 -2,436

Unusedreversals – -184 -403 -587

Impactofforeignexchangerates -96 -4 -308 -408

Impactofchangesinconsolidationscopeandmethod – – – –

Othermovements – -197 197 –

AT31DECEMBER2020 4,600 2,810 3,790 11,199

CONTINGENTLIABILITIESNOTE9.2

Contingent liabilities correspond to potential obligations arising from past events, whose existence will only be confirmed by theoccurrenceofuncertainfutureeventsthatarebeyondtheentity’scontrol,orfromcurrentobligationsforwhichnocashoutflowislikelyto occur. Except for those resulting frombusiness combinations, they are not recognised but disclosed in the notes to the financialstatements.

TheGroup has contingent liabilities relating to legal, arbitration or regulatory proceedings arising in the normal course of its business.KnownorongoingclaimsandlitigationinvolvingSomfyoranyoftheGroupcompanieswerereviewedattheendofthereportingperiod.Basedontheadviceoflegalcounsel,allprovisionsdeemednecessaryhavebeenmadetocovertherelatedrisks.AlltheGroup’scontingentliabilitiesarelistedintheHighlights.



EMPLOYEEINFORMATIONNOTE10—

WORKFORCENOTE10.1

SomfyGroup’sworkforceat31December2020, including temporaryandpart-timeemployees recordedona full-timeequivalentbasis,wasasfollows:

31/12/20 31/12/19

Averageworkforce 6,460 6,223

Workforceatperiodend 6,498 6,067

EMPLOYEEBENEFITSNOTE10.2

Note10.2.1Pensionsandotherlong-termbenefits

Inrespectofpensionplancommitments,theGroupcontributestopensionplansorgrantsbenefitstoemployeesonretirementin compliancewith the rules and regulations in place in eachcountry.Thesebenefitshavebeenmeasured.Contributions paid in respect of plans analysed as definedcontributionplans,forwhichtheGrouphasnootherobligationthanpaying contributions, are recognised as expenses for thefinancialyear.Fordefinedbenefitplansrelatingtopost-employmentbenefits,thecostofbenefitsismeasuredusingtheprojectedunitcreditmethod.Accordingtothismethod,therightstobenefitsareallocatedtoperiods of service depending on the plan’s formula foracquisitionof rights,by takingaccountofastraight-lineeffectwhere the rate of acquisition of rights is not uniform to theperiodsofsubsequentservice.The amount of future payments corresponding to benefitsgranted to employees are measured on the basis of salaryincrease,retirementageanddeathrateassumptions,andthendiscounted to their present value on the basis of long-termbondinterestratesofprimeissuers.These plans are either financed – their assets beingmanagedseparately and independently from the Group – or not, withtheircommitmentsbeingrecognisedinthebalancesheetunder“Employeebenefits”.The provision recognised in the balance sheet corresponds tothe present value of the obligations calculated as describedabove,lessthefairvalueofplanassets.

Thedifferentdefinedbenefitplansarethefollowing:retirement benefit plans (IFC) for all French companies, in–compliancewithapplicablecollectiveagreements;defined benefit pension plans in international subsidiaries–(UnitedStatesinparticular).

Re-measurements of the net defined benefit liability, whichcomprisesactuarialgainsand losses,thereturnonplanassets(excluding amounts accounted for in the calculation of netinterestonthenetliability)and,ifapplicable,thechangeintheeffectofassetsceiling(excludingamountsaccountedforinthecalculation of net interest on the net liability) are recognisedimmediatelyinothercomprehensiveincome.The past service cost resulting from a plan amendment orcurtailmentofanexistingplanisimmediatelyexpensed.Expenses relating to this type of plan are recognised underemployeeexpensesand,withregardtotheaccretionexpense,undernetfinancialexpense.Seniority awards are treated as long-termbenefits granted toemployees and provided for on the basis of an actuarialevaluation at every year-end. Actuarial gains and losses arerecognisedasexpenses.Also, the severance pay provision (TFR) applicable to Italiancompaniesistreatedasalong-termbenefit.

At31December2020,actuariallossesrecognisedinreservesamountedto€8.9million(i.e.anegative€11.9millionin“Employeebenefits”andapositive€3.0millionindeferredtax).



Movementsbetween2019and2020canbeanalysedasfollows:

RETIREMENTBENEFITS

€thousands

2020 2019

France Othercountries

Total France Othercountries

Total

GROSSCOMMITMENTS

Openingbalance 21,690 21,968 43,658 18,704 20,750 39,454

Netexpensefortheperiod: 1,835 968 2,803 583 1,083 1,666

currentservicecostandfinancialcost– 1,835 968 2,803 583 1,083 1,666

returnonplanassets– – – – – – –

employeecontributions– – – – – – –

Contributionspaid – – – – – –

Benefitspaid -32 -354 -386 -293 -227 -520

Actuarialgains&losses/Pastservicecost 87 – 87 2,696 17 2,713

Changesinforeignexchangerates – -1,543 -1,543 – 345 345

Changesinconsolidationscope – – – – – –

Closingbalance 23,580 21,039 44,619 21,690 21,968 43,658

PLANASSETS

Openingbalance -560 -18,070 -18,630 -825 -15,696 -16,521

Netexpensefortheperiod: -3 -425 -428 -12 -412 -424

currentservicecostandfinancialcost– – – – – – –

returnonplanassets– -3 -425 -428 -12 -412 -424

employeecontributions– – – – – – –

Contributionspaid – -876 -876 – -1,598 -1,598

Benefitspaid 32 25 57 282 – 282

Actuarialgainsandlosses -3 1,568 1,565 -5 -73 -78

Changesinforeignexchangerates – – – – -291 -291

Changesinconsolidationscope – – – – – –

Closingbalance -534 -17,778 -18,312 -560 -18,070 -18,630

OPENINGBALANCEOFPROVISION 21,130 3,898 25,028 17,879 5,054 22,933

CLOSINGBALANCEOFPROVISION 23,046 3,261 26,307 21,130 3,898 25,028

TOTALMOVEMENTSRECOGNISEDDURINGTHEFINANCIALYEAR -1,833 -541 -2,374 -563 -670 -1,233



LONGSERVICE&JUBILEEAWARDSANDTFR–TRATTAMENTODIFINERAPPORTO

€thousands

2020 2019

Actuarialliabilities

Longserviceand

jubileeawards

TFRliability Total Actuarialliabilities

Longserviceand

jubileeawards

TFRliability Total

OPENINGBALANCE 2,812 1,984 4,796 2,419 2,087 4,506

Cost 118 1,133 1,251 470 1,099 1,569

Benefitspaid -76 -1,132 -1,208 -84 -1,202 -1,286

Changesinconsolidationscope&foreignexchangerates -9 – -9 7 – 7

CLOSINGBALANCE 2,845 1,985 4,830 2,812 1,984 4,796

Themainactuarialassumptionsusedareasfollows:

At31December 2020 2019

Discountrate

France 0.5% 0.5%

Germany 0.7% 0.5%

UnitedStates 3.3% 3.3%

Other 1.0-5.0% 1.0-5.0%

Futuresalaryincreases

France 2.0% 2.0%

Germany 2.0% 2.0%

UnitedStates 3.0% 3.0%

Other 1.0-3.0% 1.0-3.0%

The sensitivity of the gross retirement benefit commitment based on a variation of +0.5%/-0.5% in discount rate is -6.87%/+7.60%,respectively.

GrossremunerationofManagementBoardandSupervisoryBoardmembersNote10.2.2

€thousands 31/12/20 31/12/19

Short-termbenefits 2,167 1,959

Post-employmentbenefits 22 24

Post-employmentbenefitscorrespondtoretirementbenefitsassociatedwiththeemploymentcontractsofManagementBoardmembers.



SHARE-BASEDPAYMENTSNOTE10.3

SomeGroupemployees, including senior executives,maybeentitled to theallocationof free shares, subject to theachievementofcertainemploymentandperformanceconditions,andoptionsentitlingthemtoacquireSomfySAsharesatapricefixedinadvance.TheGroupdoesnotgrantwarrantstosubscribeforshares.Effectiveallocationofoptionsandfreesharesissubjecttoconditionsbeingfulfilled.EachbeneficiarymustbeemployedbytheGroupatthedateoptionsareexercisedorfreesharesvested.Forsomeemployees,theabilitytoexerciseoptionsmayalsobegovernedbytheachievementofpredeterminedobjectives.OptionswerevaluedusingtheBlack&Scholesmodel,whichcalculatesthefairvalueofthebenefitgrantedtodateandtakesaccountofvariousparameterssuchastheshareprice,exerciseprice,expectedvolatility,expecteddividends,riskfreeinterestrateandthelifeoftheoption.Thefairvalueoffreesharesisdeterminedusinganapproachthatfaithfullyreplicatesthemethodologythatwouldbeusedbyabank’stradingroomshouldbeneficiariesrequestapricefromthelattertomonetisetheirshares.During the rightsvestingperiod, the fairvalueofoptionsand freeshares thusdetermined is split inproportion to theacquisitionofrights.Thisexpenseispostedtoemployeeexpensesandoffsetbyanincreaseinequity.Uponexerciseoftheoptions,theexercisepricereceivedisrecordedundercashandoffsetinequity.Thedilutiveimpactofoutstandingoptionsandfreesharesisreflectedinthecalculationofdilutedearningspershare.InaccordancewithIFRS2,stockoptionsarevaluedatmarketvalueatthedateofallocationandsubsequentlyamortisedthroughtheincomestatementoverthevestingperiodforallplansgrantedsince7November2002.

At31December2020,nomorestockoptionplansexisted.At its meeting of 12November 2018, the Management Board of Somfy SA decided to allocate Somfy SA performance shares to7beneficiariesemployedbySomfyProtectbyMyfox.ThevestingoftheseperformancesharesissubjecttotheconditionthattheymustremainemployedbytheGroup.Finalvestingwilltakeplaceon30June2021.Thesharesvestedwillbeavailablefrom1July2021andwillnotbesubjecttoaretentionobligation.During2019,theManagementBoardofSomfySAagreedonthefollowingallocationsofSomfySAperformanceshares:

atitsmeetingof20May2019,allocationofSomfyperformancesharesto173beneficiaries.Thevestingoftheseperformancesharesis–subjecttotheconditionthattheymustremainemployedbytheGroup.Finalvestingwilltakeplaceon30June2021.Thesharesvestedwillbeavailablefrom1July2021andwillnotbesubjecttoaretentionobligation;atitsmeetingof15November2019,allocationofSomfyperformancesharesto1beneficiary.Thevestingoftheseperformancesharesis–subjecttotheconditionthattheymustremainemployedbytheGroup.Finalvestingwilltakeplaceon30June2021.Thesharesvestedwillbeavailablefrom17November2021sincetheywillbesubjecttoaretentionobligation;at itsmeeting of 15November 2019, allocation of Somfy performance shares to 10 beneficiaries. The vesting of these performance–sharesissubjecttotheconditionthattheymustremainemployedbytheGroup.Finalvestingwilltakeplaceon30June2021.Thesharesvestedwillbeavailablefrom17November2021sincetheywillbesubjecttoaretentionobligation.

During2020,theManagementBoardofSomfySAagreedonthefollowingallocationsofSomfySAperformanceshares:atitsmeetingof31August2020,allocationofSomfyperformancesharesto52beneficiaries.Thevestingoftheseperformancesharesis–subjecttotheconditionthattheymustremainemployedbytheGroup.Finalvestingwilltakeplaceon15September2022.Thesharesvestedwillbeavailablefrom16September2022andwillnotbesubjecttoaretentionobligation;atitsmeetingof25November2020,allocationofSomfyperformancesharesto3beneficiaries.Thevestingoftheseperformanceshares–issubjecttotheconditionthattheymustremainemployedbytheGroup.Finalvestingwilltakeplaceon28November2022.Thesharesvestedwillbeavailablefrom29November2022andwillnotbesubjecttoaretentionobligation.

At31December2020,thefreesharepositionwasasfollows:

Plandate Plann° Numberofbene-ficiaries

Numberofsharesgranted

Priceper

share(€)

Allocationdate

Vestingdate

Revisionoftheshares

numberrelatedtopresence

andperformance

conditions

Numberofsharesvestedin

2020

Numberofshares

potentiallygrantedat31/12/20

12/11/18 Myfoxplan AGA4 7 5,239 66.26 30/06/21 01/07/21 – – 5,239

20/05/19 AGAP2021plan 45 32,370 75.62 30/06/21 01/07/21 -11,192 – 21,178

20/05/19 AGA2021plan 128 37,637 75.62 30/06/21 01/07/21 -13,012 – 24,625

15/11/19 AGAP2021plann°2 1 1,080 81.51 30/06/21 17/11/21 -237 – 843

15/11/19SecurityBusiness

Groupplan10 6,015 81.51 30/06/21 17/11/21 -6,015 – –

31/08/20 AGAP2022plan 52 17,340 100.83 15/09/22 16/09/22 -5,150 – 12,190

25/11/20 AGAP2022plann°2 3 516 126.24 28/11/22 29/11/22 -86 – 430



CURRENTANDDEFERREDTAXNOTE11—

CURRENTTAXThetaxconsolidationagreementsignedbetweenSomfySAandits direct and indirect subsidiaries was renewed on 1January2013foranindefiniteperiodoftime.The following companies are party to this agreement at31December 2020: Somfy SA, SomfyActivitésSA, Simu, CMC,SEM-T, DomisSA, BFT Sud-Est,Opendoors, Automatismes BFTFrance,OverkizandSomfyProtectbyMyfox.Under this agreement, the difference between the sum ofincometaxescalculatedforeachcompanyandthetotalofthetax integratedgroupisaccountedforas incomeintheincomestatementoftheGroup’sholdingcompany.Should a subsidiary cease to be a member of the taxconsolidation, it will be compensated by Somfy SA inaccordance with a jointly-agreed exit methodology, takingaccountofthesituationatthatdate.

DEFERREDTAXDeferred taxassetsand liabilitiesaremeasuredat the incometaxrateexpectedtoapplytothefinancialyearwhentheassetwill be realisedor the liability settled, on thebasis of incometax rates (and tax regulations)adoptedorvirtuallyadoptedatyear-end.Deferred tax is recognised for the temporary differencesbetweenthebookvalueofassetsandliabilitiesanditstaxvalueandrestatementsmadeonconsolidationtoconformtoGroupaccounting standards (extended concept of deferred taxcalculation).Deferredtaxrelatingtotaxlossesofcompaniesnotincludedinthetaxconsolidationorthathavearisenpriortotheirinclusionin the tax consolidation are recognised when the conditionsdefinedbyIAS12aremet:

theentityhassufficienttaxabletemporarydifferenceswitha–single tax authority and for the same entity, which willgenerate taxable amounts against which unused tax lossesandtaxcreditscanbeoffsetbeforetheyexpire;itislikelythattheentitywillgeneratetaxableprofitsbefore–unusedtaxlossesandtaxcreditsexpire;

unused tax losses result from identifiablecauses,whichwill–probablynotreoccur;opportunities related to the entity tax management will–generate taxable profits for the financial year duringwhichunusedtaxlossesandtaxcreditscanbeallocated.

If it is unlikely that the entity will make sufficient profits toallocateunusedtaxlossesortaxcredits,deferredtaxassetsarenotrecognised.

CVAETheCVAEtaxchargeisclassifiedasincometaxchargeinorderto provide more relevant information for comparison, givenprevailingmarketpractice.

INVESTMENTTAXCREDITThe treatment of investment tax credits is not specificallyaddressedunderIFRS.A number of criteria need to be assessed on a case-by-casebasis to ascertain whether to recognise the investment taxcreditasincometax(IAS12)orasagrant(IAS20).Thesecriteria includethenon-refundablenatureornotof thetaxcreditshouldfuturetaxableprofitsbesufficient,thespecificnatureor not of the investment, the taxable natureor not ofthetaxcreditandthenumberofrequirementsforeligibilityforthetaxcredit.TheCIRtaxcreditisrecognisedasanIAS20operatinggrantinotheroperatingincome.The analysis of the accounting treatment of SOPEM’sinvestment tax credit, carried out in accordance with thecriteria set out above, led the Group to conclude that it fallswithin the scope of IAS12. This tax credit was thereforerecognisedasatax income. Inordertoavailofthistaxcredit,SOPEMhastocomplywithanumberofcommitments,suchasaminimum investments value, aminimum number of peopleemployed at the site and a deadline for completion of theinvestments.



TAXPROOFNOTE11.1

€thousands 31/12/20 31/12/19

Profitbeforetaxfromcontinuingoperations 254,643 196,533

Shareofexpensesondividends 1,525 1,391

Goodwillimpairment 711 710

ReclassificationofCVAEtoIncometax -4,783 -4,132

ReclassificationofCIRtoOtheroperatingincome -5,966 -6,639

Other 2,355 -248

Permanentdifferences -6,159 -8,918

Netprofittaxedatreducedrate -37,096 -32,005

Netprofittaxableatstandardrate 211,388 155,610

TaxrateinFrance 32.02% 34.43%

TaxchargerecalculatedattheFrenchstandardrate 67,693 53,576

Taxatreducedrate 3,832 3,306

Differenceinstandardrateinforeigncountries -25,143 -22,333

Taxlossesfortheyear,unrecognisedinpreviousperiods,deficitsused -126 330

Effectoftheratedifference -25,269 -22,003

Taxcredits -950 -1,919

Othertaxesandmiscellaneous 7,205 4,210

GROUPTAX 52,511 37,170

Effectiverate 20.62% 18.91%

TheresultstaxedatareducedrateinFranceinvolvepatentroyalties,whichweretaxedat10.33%.InFrance,theordinarytaxationratefellfrom34.43%in2019to32.02%in2020,inlinewiththegradualreductioninthenormalrateofcorporateincometax.ThemaincountriesthatcontributedtothedifferenceinthetaxratewereTunisia(€13.0million),otherEuropeancountries(€4.6million),Poland(€4.0million),MiddleEasterncountries(€0.9million),theUnitedStates(€1.1million)andGermany(€0.6million).TaxcreditswereprimarilyaffectedbytheSOPEMtaxcredit(Poland):€0.7millionin2020comparedwith€1.6millionin2019.In2020,the“Othertaxesandmiscellaneous”itemnotablyincluded€4.8millioninrespectoftheCVAEcorporatevalue-addedcontributionand€0.9millioninrespectoftheimpactofthechangeinthetaxationrate.In2019,thisitemmainlyconsistedof€4.1millioninrespectoftheCVAEcontribution.

Currenttaxassetsandliabilities

Thechangeintaxliabilitiesandreceivableswasduetotheeffectoftaxinstalmentsandtothechangeintaxexpensefromonefinancialyeartoanother.

Retainedlossescapitalisedorused

Deferredtaxrelatingtotaxlosseswasnotcapitalisedwhereitwasdeemedunlikelythatfuturetaxableprofitswillbesufficienttoabsorbunused previous tax losses. The total amount of these losses was €50.0million at the end of 2020, based on the standard tax rate,comparedwith€54.9millionattheendof2019.Nosignificantdeferredtaxassetswererecognisedin2019inrelationtotaxlossesarisingduringthefinancialyearorinpreviousyears.



DEFERREDTAXRECOGNISEDINITEMSOFOTHERCOMPREHENSIVEINCOMENOTE11.2

€thousands 31/12/20 31/12/19

Deferredtaxassets

actuarialgainsandlossesonemployeebenefits– 3,012 2,985

foreigncurrencyhedges– 143 132

rawmaterialhedges– – –

Deferredtaxliabilities

foreigncurrencyhedges– – –

rawmaterialhedges– 169 42

NETDEFERREDTAX 2,986 3,075

ANALYSISBYTYPENOTE11.3

€thousands31/12/20 31/12/19 Ofwhichincome

statementimpact

DeferredtaxonrestatementsrelatedtoIFRSstandardsandtemporarydifferences,including: -2,699 2,469 -3,216

restatementstoemployeebenefits– 6,194 5,887 289

restatementsresultingfromprovisionmethods– 5,299 5,933 -499

restatementsduetotaxandsocialliabilities– 3,850 2,887 994

restatementsduetoSOPEMtaxcredit– 8,232 14,325 -5,275

restatementsonthefairvalueofhedgeinstruments– 143 132 25

restatementsresultingfromacquisitionexpenses– 255 317 -63

restatementsrelatedtothefairvalueofnon-currentassets– -349 -711 -362

restatementsrelatedtoleases(IFRS16)– -6,537 -6,643 111

restatementsrelatedtodifferencesinamortisationanddepreciation– -10,634 -9,168 -637

restatementsfromthecapitalisationofdevelopmentcosts– -4,686 -5,039 353

other– -4,465 -5,452 1,849

Deferredtaxonintragroupmargins 8,917 6,656 2,596

Miscellaneous -60 -60 –

TOTAL 6,158 9,065 -620

DEFERREDTAXASSETS 20,809 25,305 –

DEFERREDTAXLIABILITIES -14,651 -16,240 –

DeferredtaxassetsandliabilitiesbyjurisdictionorentityareoffsetinaccordancewithIAS12.



NOTE12OFF-BALANCESHEETCOMMITMENTS—TheGroup’scommitmentscomprisethefollowing:

COMMITMENTSGIVENNOTE12.1

€thousands 31/12/20 31/12/19

Guarantees&depositsgrantedandliabilityguaranteeonCIATdisposal,Dooyaputoption

105,356 94,667

Interestovertheremainingtermsofloansandleaseliabilities 3,356 3,996

Copperforwardpurchase 3,350 7,155

Foreigncurrencyforwardsaleandpurchase 11,064 8,682

TOTAL 123,125 114,500

GiventhechangeintheconsolidationmethodusedforDooya,theput option granted to the co-owners constitutes an off-balancesheet commitment with effect from end 2018. This option hasbeenexercisablesinceend2015.Interest over the remaining terms of loans and lease liabilities iscalculated only on those loans and lease liabilities with knownmaturities and not on short-term credit facilities with ad hocdrawings.

COMMITMENTSRECEIVEDNOTE12.2

€thousands 31/12/20 31/12/19

Guarantees&depositsreceived,liabilityguarantees(Myfox,iHome) 7,663 8,869

Unusedcreditlines 174,500 190,750

TOTAL 182,163 199,619

COMMITMENTSTOACQUIREADDITIONALSHARESNOTE12.3INCOMPANIESNOTFULLY-CONSOLIDATED

Due to the lack of specific IFRS provisions and in accordancewith the recommendation issued by the AMF on 4November2009,theGroupoptedforthefollowingaccountingtreatmentinrelationtocommitmentstoacquirenon-controllinginterests.Uponinitialrecognition,thesecommitmentsarerecognisedasfinancialdebtatthediscountedacquisitionvalueandoffsetbyareduction inthebookvalueofnon-controlling interests.Thedifference between the book value of the non-controllinginterests due to be acquired and the value of the estimatedliabilityisrecognisedinequity.

INVESTMENTSINASSOCIATESANDJOINTNOTE13VENTURESANDRELATEDPARTIES

—INVESTMENTSINASSOCIATESANDJOINTNOTE13.1VENTURES

The value of investments in associates and joint venturescorrespondstotheproportionofshareholders’equityheld.

€thousands 31/12/20 31/12/19

Investmentsinassociatesandjointventuresatthebeginningoftheyear 136,549 132,781

Changesinconsolidationscopeandmethod – –

Shareofprofit/(loss)fromassociates 10,858 3,846

Dividendspaid – –

Changesinforeignexchangerates -1,834 384

Other -102 -462

INVESTMENTSINASSOCIATESANDJOINTVENTURESATTHEENDOFTHEPERIOD

145,471 136,549

“Investments in associates and joint ventures” consists ofinvestments in Dooya (€144.8million) and Arve Finance(€0.7million).

Dooya’smajoraggregatesareasfollows:

€thousands 31/12/20 31/12/19

Incomestatement

Sales 204,052 191,467



Dooya’snetprofitwas€15.5million for theyear to31December2020. The share attributable to Somfywas €10.9million, being aprofit of €1.4million for the first half and €9.5million for thesecondhalf.

€thousands 31/12/20 31/12/19

Balancesheet



Non-currentliabilities 3,708 4,616





€thousands 31/12/20 31/12/19

Consolidatedcashflowstatement

Netcashflowfromoperatingactivities 34,212 18,214

Netcashflowfrominvestingactivities -2,309 -4,010

Netcashflowfromfinancingandcapitalactivities -11,029 -4,566

At 31December 2020, the Group reviewed the value ofequity-accountedinvestments.The recoverable amount of an equity investment ismeasured atthehigherofitsfairvalue,afterdeductionofdisposalcosts,anditsvalueinuse.If the recoverable amount exceeds the net book value of theinvestment in the associate at the end of the period, noimpairmentisrecognised.However, if this amount is lower than the net book value, animpairment loss equal to the difference is recognised in priorityagainstgoodwill.Goodwill related toequity-accounted companies isposted to the“Investmentsinassociatesandjointventures”account.Impairment recorded on the equity-accounted value may bereversed intheeventofasignificantrecovery inthevalueof theequityinvestment.Fair value after deduction of disposal costs is the amountobtainablefromthesaleofanassetinanarm’slengthtransactionbetween knowledgeable, willing parties, after deducting disposalcosts.Value in use is determined based on cash flows, which areestimatedusingplansorbudgetsover amaximumperiodof fiveyears; the cash flows beyond that date are extrapolated byapplying a constant or decreasing rate of change, and arediscountedbyusinglong-termpost-taxmarketrates,whichreflectthemarket’sestimatesofthetimevalueofmoneyandthespecificrisks inherent to the assets. In certain cases, cash flows can beestimatedoverlongerperiods,tobejustifiedequityinvestmentbyequityinvestment.

Sales are expected to grow in 2021, with the current operatingmarginratereturningtopre-crisislevels.For the purposes of the impairment test on the investment inDooya, a discount rate of 12.5% (unchanged from 31December2019)andagrowthratetoinfinityof2.3%(2.75%at31December2019)wereused.No impairment charge was recorded during the 2020 financialyear.A three-point increase in the discount rate combined with athree-pointdecreaseintheEBITDAtosalesratiointhenormativeflowused in thecalculationof the terminalvaluecould lead toa€6millionimpairmentlossonequity-accountedsecurities.

NOTE13.2RELATED-PARTYDISCLOSURES

Relatedpartiesinclude:theparentcompany;–companies which exert joint control or a significant influence–overthecompany;subsidiaries;–associates;–jointventures;–membersoftheManagementBoard,theSupervisoryBoardand–theManagementCommittee.

Transactionswithassociates

Associates are companiesoverwhich theGrouphas a significantinfluence or joint control and which are consolidated using theequity method. Transactions with related parties are made onarm’slengthterms.Grouppurchases fromDooya totalled€3.0million for theyear to31December 2020 and €4.0million for the year to 31December2019. Group trade payables with Dooya stood at €0.3million at31December2020and€0.6millionat31December2019.Transactions with other related parties involved negligibleamounts.

STATUTORYAUDITORS’FEESNOTE14—Pursuant toregulationn°2016-09 issuedbytheAutoritédesNormesComptables (ANC), the followingtable indicates the feesnetof tax(excludingdisbursements)paidbytheparentcompanyanditssubsidiariestotheStatutoryAuditorsfortheirtermsofoffice:

€thousands

Ernst&Young KPMG Total

2020 2019 2020 2019 2020 2019

Certificationoffinancialstatements

Issuer 102 100 78 77 180 177

Subsidiaries 660 683 405 387 1,065 1,070

Sub-total 761 782 484 464 1,245 1,246

Otherservices*

Issuer 14 46 57 10 70 56

Subsidiaries 131 191 22 55 153 246

Sub-total 145 237 78 65 223 301

TOTAL 906 1,019 562 529 1,468 1,548

Theseservicescoverservicesrequiredbylawandregulations(reportsoncapitalincreases,comfortletters,etc.)aswellasservicesprovidedatthe*requestofSomfyanditssubsidiaries(duediligence,legalandtaxassistanceandvariouscertifications).



LISTOFCONSOLIDATEDANDEQUITY-ACCOUNTEDENTITIESNOTE15—

Companyname Headoffice%control31/12/20

%interest31/12/20

%interest31/12/19

SomfySA 74300Cluses(France) (parentcompany)

(parentcompany)

(parentcompany)

Fully-consolidatedcompanies

SomfyActivitésSA Cluses(France) 100.00 100.00 100.00

CMC Cluses(France) 100.00 100.00 100.00

Somfybat Cluses(France) 100.00 100.00 100.00

DomisSA Rumilly(France) 100.00 100.00 100.00

SITEM Zaghouan(Tunisia) 100.00 100.00 100.00

SITEMServices Zaghouan(Tunisia) 100.00 100.00 100.00

SOPEMspolkazograniczonaodpowiedzialnoscia Niepolomicie(Poland) 100.00 100.00 100.00

SomfyEasternEuropeAreaspzoo Warsaw(Poland) 100.00 100.00 100.00

SomfyLtd Yeadon(UK) 100.00 100.00 100.00

SomfyPTY.Limited Rydalmere(Australia) 100.00 100.00 100.00

SomfyAutomationServicesPTYLtd Rydalmere(Australia) 100.00 100.00 100.00

N.VSomfyS.A Zaventem(Belgium) 100.00 100.00 100.00

SomfyBrasilLTDA Osasco(Brazil) 100.00 100.00 100.00

NeocontrolSoluçõesemAutomaçãoLTDA BeloHorizonte(Brazil) 100.00 100.00 100.00

NeocontrolUSLLC Plantation(US) 100.00 100.00 100.00

SomfyColombiaSAS Bogota(Colombia) 100.00 100.00 100.00

SomfyArgentinaS.R.L. SanFernando(Argentina) 100.00 100.00 100.00

GABRParticipaçõesLTDA SãoPaulo(Brazil) 100.00 100.00 100.00

SomfyGmbH(Germany) Rottenburg(Germany) 100.00 100.00 100.00

HIMOTIONBV Leiden(Netherlands) 100.00 100.00 100.00

SomfyGmbH(Austria) Elsbethen-Glasenbach(Austria) 100.00 100.00 100.00

SomfyKereskedelmiKft Vecsés(Hungary) 100.00 100.00 100.00

Somfyspolkazograniczonaodpowiedzialnoscia Warsaw(Poland) 100.00 100.00 100.00

Somfyspols.r.o. Prague(CzechRepublic) 100.00 100.00 100.00

SomfyS.R.L. Tărlungeni(Romania) 100.00 100.00 100.00

SomfyLimitedLiabilitycompany Moscow(Russia) 100.00 100.00 100.00

SomfySIA Riga(Latvia) 100.00 100.00 100.00

LimitedLiabilitycompanySomfy Kiev(Ukraine) 100.00 100.00 100.00

SomfyBulgariaAD Sofia(Bulgaria) 100.00 100.00 100.00

ChusikHoesaSomfy Seongnam(Korea) 100.00 100.00 100.00

SomfyItaliaSRL Milan(Italy) 100.00 100.00 100.00

SomfyNederlandBV Hoofddorp(Netherlands) 100.00 100.00 100.00

SomfyEspañaSA CornelladeLlobregat(Spain) 100.00 100.00 100.00

AutomatismosPujolSL SantFruitosdeBages(Spain) 100.00 100.00 100.00

AutomatismosPujolPortugalLda Coimbra(Portugal) 100.00 100.00 100.00

SAPSRL(liquidated) Pomezia(Italy) – – 100.00

SomfySystemsInc Dayton(US) 100.00 100.00 100.00




%interest31/12/20

%interest31/12/19

SomfySA(Suisse) Bassersdorf(Switzerland) 100.00 100.00 100.00

SomfySwedenAktiebolag Malmö(Sweden) 100.00 100.00 100.00

SomfyNorwayAS Skedsmokorset(Norway) 100.00 100.00 100.00

SomfyPTELtd Singapore 100.00 100.00 100.00

Somfy(Thailand)Co.,Ltd Bangkok(Thailand) 100.00 100.00 100.00

SomfyTaiwanCoLtd Taipei(Taiwan) 100.00 100.00 100.00

AsianCapitalInternationalLimited HongKong 100.00 100.00 100.00

SinoGlobalInternationalHoldingsLimited HongKong 100.00 100.00 100.00

SinoLinkTradingLimited HongKong 100.00 100.00 100.00

SomfyAsia-PacificCoLtd HongKong 100.00 100.00 100.00

SomfyCoLimited HongKong 100.00 100.00 100.00

SomfyChinaCoLtd Shanghai(China) 100.00 100.00 100.00

ZhejiangLianDaScienceandTechnologyCo.,Ltd. Huzhou(China) 95.00 95.00 95.00

SomfyMiddleEastCo.Ltd Limassol(RepublicofCyprus) 100.00 100.00 100.00

SomfyEgypt Cairo(Egypt) 100.00 100.00 100.00

SisaHomeAutomationLtd RishonLeZion(Israel) 100.00 100.00 100.00

SomfyMaroc Casablanca(Morocco) 100.00 100.00 100.00

SomfyHellasSA Acharnae(Greece) 100.00 100.00 100.00

SomfyEVOtomasyonSistemleriTicaretLtdSti Istanbul(Turkey) 100.00 100.00 100.00

SomfySouthAfricaPTYLimited CapeTown(SouthAfrica) 100.00 100.00 100.00

SomfyTunisie Tunis(Tunisia) 100.00 100.00 100.00

SomfyServices Tunis(Tunisia) 50.00 50.00 50.00

SomfyMexico,S.A.DEC.V. Tlalnepantla(Mexico) 100.00 100.00 100.00

SyservmexSRLDECV Tlalnepantla(Mexico) 100.00 100.00 100.00

SomfyKabushikiKaisha Tokyo(Japan) 100.00 100.00 100.00

SomfyIndiaPvtLtd NewDehli(India) 100.00 100.00 100.00

SomfySaudiArabia Jeddah(SaudiArabia) 75.00 75.00 75.00

PROMOFIBV Hoofddorp(Netherlands) 100.00 100.00 100.00

FIGESTBV Hoofddorp(Netherlands) 100.00 100.00 100.00

SomfyLLC Dover(US) 100.00 100.00 100.00

SomfyULC Halifax(Canada) 100.00 100.00 100.00

Simu Arc-les-Gray(France) 100.00 100.00 100.00

SimuGmbH Iserlohn(Germany) 100.00 100.00 100.00

WindowAutomationIndustrySRL Galliera(Italy) 100.00 100.00 100.00

Overkiz ÉpagnyMetz-Tessy(France) 96.63 96.63 96.63

OverkizAsiaCo.Limited HongKong 96.63 96.63 96.63

Opendoors Cluses(France) 100.00 100.00 100.00

iHomeSystems(Asia)Limited HongKong 100.00 100.00 100.00

iHomeSystems(Thailand)Co.Ltd Bangkok(Thailand) 100.00 100.00 100.00

SomfyAutomationMalaysiaSdn.Bhd KualaLumpur(Malaysia) 100.00 100.00 100.00

SomfyProtectbyMyfox Labège(France) 100.00 100.00 100.00

SEM-T Cluses(France) 100.00 100.00 100.00




%interest31/12/20

%interest31/12/19

DSGCoordinationCenterSA Geneva(Switzerland) 100.00 100.00 100.00

BFTSpA Schio(Italy) 100.00 100.00 100.00

AutomatismesBFTFrance Saint-Priest(France) 100.00 100.00 100.00

BFTGroupItalibericadeAutomatismosSL Granollers(Spain) 100.00 100.00 99.02

BFTAntriebssystemeGmbH Oberasbach(Germany) 100.00 100.00 100.00

BFTAutomationUKLtd Stockport(UK) 100.00 100.00 100.00

BFTBeneluxSA Nivelles(Belgium) 100.00 100.00 100.00

BFTAdriad.o.o. Drazice(Croatia) 100.00 100.00 100.00

BFTPolskaspzoo Zielonka(Poland) 100.00 100.00 100.00

BFTAmericasInc. BocaRaton(US) 100.00 100.00 100.00

BFTPortugalSA Coimbra(Portugal) 100.00 100.00 100.00

BFTAutomation(South)Ltd Swindon(UK) 100.00 100.00 100.00

BFTAutomationAustraliaPTY WetherillPark(Australia) 100.00 100.00 100.00

BFTCZSro Prague(CzechRepublic) 100.00 100.00 100.00

O&OSRL(mergedintoBFTSpA) Soliera(Italy) – – 100.00

BFTVenetoSRL Schio(Italy) 100.00 100.00 100.00

BFTOtomasyonKapi Istanbul(Turkey) 100.00 100.00 100.00

BFTIstanbul Kocaeli(Turkey) 100.00 100.00 100.00

BFTGreece Athens(Greece) 100.00 100.00 100.00

BFTAutomationIreland Dublin(Ireland) 100.00 100.00 100.00

BFTAutomationSystemsPTL Hyderabad(India) 51.00 51.00 51.00

PujolItaliaSRL(mergedintoBFTSpA) Schio(Italy) – – 100.00

BFTMiddleEastFZO Dubai(UnitedArabEmirates) 100.00 100.00 100.00

BFTAutoGateandDoor(Shanghai)Co.Ltd Shanghai(China) 100.00 100.00 100.00

BFTGatesandDoorsSRL Bucharest(Romania) 100.00 100.00 100.00

BFTAutomationNewZealand Auckland(NewZealand) 100.00 100.00 100.00

BFTSud-Est SaintLaurentduVar(France) 100.00 100.00 100.00

Equity-accountedcompanies

ArveFinance Cluses(France) 50.17 50.17 50.17

HongKongCTLTTradeCo.,Limited HongKong 70.00 70.00 70.00

NingboDooyaMechanicandElectronicTechnologyCoLtd Ningbo(China) 70.00 70.00 70.00

ShanghaiZhengshangCo.,Ltd Shanghai(China) 70.00 70.00 70.00

ShanghaiBranch Shanghai(China) 70.00 70.00 70.00

HuiGongIntelligenceTechnologyLtd Shanghai(China) 70.00 70.00 70.00

NewUnityLimited HongKong 70.00 70.00 70.00

DooyaSunShadingTechnologyCo.Ltd. Ningbo(China) 70.00 70.00 70.00

NingboSleepwellCoLtd Ningbo(China) 70.00 70.00 70.00

BaixingCoLtd Ningbo(China) 70.00 70.00 70.00

ShanghaiGoodnight Ningbo(China) 70.00 70.00 70.00



153

06


PARENT COMPANY FINANCIALSTATEMENTS

Incomestatementfortheyearended31December2020154

Balancesheetat31December2020155

Proposedallocationof2020profit155

NotestotheSomfySAfinancialstatements156

06

06 PARENT COMPANY FINANCIAL STATEMENTS


PARENT COMPANY FINANCIALSTATEMENTS

INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

€thousands 31/12/20 31/12/19

Netsales 3,862 3,705

Otherrevenue -57 680

Othercharges: -12,810 -14,139

Personnelexpenses -2,065 -1,981

Taxesandduties -261 -229

Netoperatingexpenses -10,484 -11,928

Amortisation,depreciationandprovisioncharges/reversals – –

OPERATINGRESULT -9,004 -9,754

Netfinancialincome 107,677 122,143

PROFITONORDINARYACTIVITIESBEFORETAX 98,673 112,388

Extraordinaryresult -58 -313

PROFITBEFORETAX 98,615 112,076

Incometax 2,345 2,913

NETPROFIT 100,960 114,988



BALANCE SHEET AT 31 DECEMBER 2020

BALANCESHEET-ASSETS—

€thousands31/12/20

Net31/12/19

Net

Non-currentassets

Intangibleassets 1 1

Property,plantandequipment – –

Financialassets 398,213 403,001

TotalNon-currentassets 398,214 403,002

Currentassets

Inventoriesandwork-inprogress – –

Tradereceivables 1,050 1,052

Otherreceivablesandaccruals 53,007 74,111

Marketablesecuritiesandtermdeposits 139,576 163,022

Cashandcashequivalents 447,470 256,162

TotalCurrentassets 641,104 494,347

TOTALASSETS 1,039,318 897,349

EQUITYANDLIABILITIES—

€thousands 31/12/20 31/12/19

Shareholders’equity

Sharecapital 7,400 7,400

Mergerandissuepremium 1,866 1,866

Reserves 605,586 533,574

Netprofit 100,960 114,988

TotalShareholders’equity 715,812 657,828

Provisionsforliabilitiesandcharges 9,717 6,275

Liabilities

Borrowingsandfinancialliabilities 5,883 793

Tradepayables 1,710 1,686

Otherpayablesandaccruals 306,195 230,766

TotalLiabilities 313,788 233,245

TOTALEQUITYANDLIABILITIES 1,039,318 897,349

PROPOSED ALLOCATION OF 2020 PROFIT

Euros

Source

Retainedearningsfromprioryears 3,273,611.25

Netprofitfortheyear 100,960,384.65

104,233,995.90

Euros

Allocation

Dividends 68,450,000.00

Optionalreserves 35,783,995.90

104,233,995.90



NOTES TO THE SOMFY SA FINANCIAL STATEMENTS

The financial statements have been prepared for the 12-monthperiodfrom1January2020to31December2020.

A–SIGNIFICANTEVENTOFTHEFINANCIALYEAR—COVID-19HEALTHCRISIS

SomfySAistheGroup’sparentcompany.2020wasprimarilycharacterisedbythehealthcrisislinkedtotheCovid-19virus.Howthecrisisunfolded,theimpactsfortheGroupand information on the risks are all detailed in the notes to theconsolidatedfinancialstatements.SomfySA’sactivityhasnotbeenaffectedbythiscrisis.At a financial level, themain impactswere a fall in the dividendallocated inrelationtothe2019financialyear,asdecidedbytheGeneral Meeting. As a precaution, Somfy SA also decided toreduce certain dividends received from subsidiaries in order tomaintainsaidsubsidiaries’ financialresourcesduringanuncertaintime. Somfy SA has not recorded anywritedown of securities orany financialadvances inconnectionwith thepandemicover theperiod.ThefinancialstructureofSomfySAhasthereforeremainedsoundwithanincreaseinthenetfinancialsurplus.As the Group’s parent company, Somfy SA is vigilant in itsassessmentofrisksrelatedtoforeignexchangeandthesupplyofraw materials and electronic components within a marketenvironment that is challenging. Currency and raw materialhedgingcontinuetobeadaptedinlinewithforecastsandmarkettrends. The assessment of liquidity and credit risks remainsunchanged. Somfy SA has €174.0million in confirmed andundrawncredit facilitiesand isnot inbreachofanycovenants. Itwill be in a position to meet its maturities over the next12months.

B–CONTINGENTLIABILITIES—Thecompanyhascontingentliabilitiesrelatingtolegal,arbitrationor regulatory proceedings arising in the normal course of itsbusiness. Knownorongoing claimsand litigation involving Somfywere reviewed at the end of the reporting period. Based on theadviceoflegalcounsel,allprovisionsdeemednecessaryhavebeenmadetocovertherelatedrisks.

SPIREL

TheCourtofAppealofChambéryissueditsrulingon21May2019on the dispute between Spirel employees and Somfy SA. Theclaims of the employees in respect of the alleged deliberatebankruptcy of Spirel and the non-material damage caused as aresult of anxiety, disappointment and vexation were judgedinadmissible, therebyconfirmingtheApril2017rulingof theHighCourt of Albertville. The employees lodged an appeal before theCourdeCassation(highestappealcourt)inAugust2019.It should be noted that their claims for damages totalled€8.2million. The liquidator of the company Spirel also sought tohaveSomfySAorderedtorefundadvancesof€2.9millionpaidbytheAGS(GuaranteeFundforthePaymentofSalaryClaims)intheeventthedisposalwasdeclarednullandvoid.ProceedingsbeforetheLabourCourt–dismissedin2016and2018and involving the employees contesting the grounds for theirdismissal and claimingdamagesof a substantially similar amounttothatsoughtbeforetheCourtofAppeal–arestillongoing.

These factors do not alter Somfy SA’s risk evaluation.Consequently, it continues to qualify these risks as contingentliabilitiesandnoprovisionwasthusrecognisedinrelationtothesedisputesat31December2020.

CIAT

On 5January 2015, Somfy SA transferred its 44.49% equityinvestment in the share capital of CIAT Group to UnitedTechnologies Corporation. On 31March 2016, UnitedTechnologies Corporation filed a complaint against the sellers ofthe CIAT shares under the liability guarantee for a total of€28.6million (Somfy’s share being €12.7million). Somfy SAconsiders these requests to be unfounded, and insufficientlydetailed and justified. In mid-November 2017, UTC brought anaction against the sellers before the Paris Commercial Court forthe liability guarantee. Proceedingsbefore theCommercial CourtandtheCourtofAppealareongoing.As the proceedings and the documentation provided by UTCcurrently stand, Somfy SA continues to contest the entirety ofUTC’sclaimsandremainsconfidentregardingtheoutcomeofthisdispute. It has qualified the risk as a contingent liability and noprovisionwasthereforerecognisedat31December2020.At 31December 2020, Somfy SA’s financial statements include areceivable for deferred settlement in relation to the sale of theCIATshares for the sumof€9.7million. Inearly July2017,SomfySAandtheothersellersbroughtanactionagainstUTCbeforetheParis Commercial Court seeking the fulfilment of the acquisitioncontractandthesettlementofthedeferredpaymentsfallingdue.In this regard, at a hearing in February2021, the judge hearingapplications for interim measures sentenced UTC to pay aprovision of €6.6million. These proceedings are however stillongoing.SomfySAremainsconfidentregardingthesettlementofthese sums and therefore no writedown in relation to thesereceivableswasrecognisedat31December2020.

C–POST-BALANCESHEETEVENTS—ACQUISITIONOFREPAR’STORES

On 14December 2020, Somfy SA finalised the acquisition of amajorityshareholdingof60%inthesharecapitalofRepar’stores,aspecialist in repair and modernisation services for roller blinds inFrance. This shareholding became effective at the start ofJanuary2021followingtheliftingoftheusualconditionsprecedent.

HEALTHCRISIS

Within thecurrenthealth crisisenvironment, theglobal situationremains uncertain and may change rapidly according to factorsthat are hard to control. It is difficult to accurately assess andanticipate the repercussions on the economy in general and onSomfySA’sbusiness,inparticularin2021.

D–ACCOUNTINGRULESANDMETHODS—The2020 financial statementshavebeenprepared inaccordancewith thegeneralaccounting rulesprescribedby theFrenchChartofAccountsderivedfromANCregulations.The general bases of accounting havebeen applied in respect oftheprincipleofprudence, in accordancewith the followingbasicassumptions:

goingconcern;–consistencyofaccountingmethodsfromoneyeartothenext;–separateaccountingperiods;–



andincompliancewiththegeneralrulesforthepreparationand–presentationofannualfinancialstatements.

The method used to value the items in the accounts is thehistoricalcostmethod.

EQUITYINVESTMENTS

Thegrossvalueofequity investmentscomprises theiracquisitioncost less related expenses. Writedown is recognised when thebook value falls below historical cost. Book value is determinedbased on several assessment items, such as year-end net assets,profitability level, future prospects and share price for listedcompanies.

OTHERSECURITIES

Theinitialvalueofothersecuritiescomprisestheiracquisitioncostless associated expenses.When the estimated realisable value islower than cost, an impairment provision is recorded for thedifference.

MARKETABLESECURITIES

Thegrossvalueofmarketablesecuritiescomprisestheirpurchasepricelessrelatedexpensesortheirtransfervalue,calculatedusingthe first in, firstoutmethod.Marketable securities are valuedattheir average quoted stock exchange price over the month ofDecember2020andareimpairedwhenthisislowerthancost.At31December2020,marketablesecuritiestotalled€96.8million,comprising:

treasurysharesof€98.3million;–aprovisionof€1.6millionforthewritedownoftreasuryshares.–

TREASURYSHARES

The companyhas implemented several successive sharebuybackprogrammes.Themostrecentbuybackprogrammewas launchedin2020; it was authorised by the Combined GeneralMeeting of24June2020,andhadthefollowingobjectives:

tostimulatethesecondarymarketorensuretheliquidityofthe–Somfyshare,bywayofaninvestmentservicesproviderwithinaliquidity contract that complies with practices recognised byregulations, it being specified that within this framework thenumber of shares considered for the calculation of the limitspecifiedabovecorrespondstothenumberofsharespurchasedlessthenumberofsharesresold;toretainthesharespurchasedandsubsequentlyexchangethem–or use them as payment within the framework of potentialacquisitions;toensurethecoverageofstockoptionplansand/orfreeshare–allocation plans (or similar) granted to employees and/orcorporate officers of the Group, as well as all other sharesallocatedunderacompanyorgroupsavingsscheme(orsimilar),inrelationtoemployeeprofit-sharingand/oranyotherformofallocationtoemployeesand/orcorporateofficersoftheGroup;to covermarketable securities giving right to the allocation of–companyshares,inaccordancewithapplicableregulations;toproceedwiththepossiblecancellationofsharesacquired,in–accordancewiththeauthorisationgrantedor tobegrantedbytheExtraordinaryGeneralMeeting.

Suchsharepurchasescouldbeeffectedbyallmeans,includingbymeansof acquiringblocksof shares andat any times consideredappropriatebytheManagementBoard.The company reserved the right to use options or derivativeinstruments,inaccordancewithapplicableregulations.These shares are classified in account 502 “Treasury shares”.Income or losses on treasury share transactions are thusrecognisedasfinancialincome/expenses.Treasurysharestobegrantedtoemployeesandallocatedtostockoptionorfreeshareplansarevaluedonaplanbyplanbasisatthelowerofacquisitioncostorexercisepriceofthecalloption.Sharesnotyetallocatedtoplansorwhichhavelapsedarevaluedat the lowerof theaveragepurchasepriceof all these sharesorthe average quoted stock exchange price over the month ofDecember2020.Allocationsarevaluedbasedonthefirstin,firstoutmethod.Sharesboughtandsoldtoensuretheliquidityandtostimulatethesecondary market and shares purchased to be retained andsubsequently exchanged are valued at the lower of the averagepurchase price of all these shares or the average quoted stockexchangepriceoverthemonthofDecember2020.Disposalsarevaluedbasedonthefirstin,firstoutmethod.

SOMFYSASTOCKOPTIONANDFREESHAREALLOCATIONPLANS

At31December2020,nomorestockoptionplansexisted.At itsmeeting of 12November 2018, theManagement Board ofSomfy SA decided to allocate Somfy SA performance shares to 7beneficiarieswhoareemployeesofSomfyProtectbyMyfox.Thevesting of these performance shares is subject to the conditionthat theymust remainemployedby theGroup. Final vestingwilltake place on 30June 2021. The shares vested will be availablefrom1July2021andwillnotbesubjecttoaretentionobligation.During2019, theManagementBoardof SomfySAagreedon thefollowingallocationsofSomfySAperformanceshares:

atitsmeetingof20May2019,allocationofSomfyperformance–shares to 173 beneficiaries. The vesting of these performanceshares is subject to the condition that they must remainemployedbytheGroup.Finalvestingwilltakeplaceon30June2021.Thesharesvestedwillbeavailable from1July2021andwillnotbesubjecttoaretentionobligation;at its meeting of 15November 2019, allocation of Somfy–performance shares to 1 beneficiary. The vesting of theseperformance shares is subject to the condition that theymustremainemployedbytheGroup.Finalvestingwilltakeplaceon30June 2021. The shares vested will be available from17November 2021 since they will be subject to a retentionobligation;at its meeting of 15November 2019, allocation of Somfy–performance shares to 10 beneficiaries. The vesting of theseperformance shares is subject to the condition that theymustremainemployedbytheGroup.Finalvestingwilltakeplaceon30June 2021. The shares vested will be available from17November 2021 since they will be subject to a retentionobligation.

During2020, theManagementBoardof SomfySAagreedon thefollowingallocationsofSomfySAperformanceshares:

at its meeting of 31August 2020, allocation of Somfy–performance shares to 52 beneficiaries. The vesting of theseperformance shares is subject to the condition that theymustremainemployedbytheGroup.Finalvestingwilltakeplaceon15September 2022. The shares vested will be available from16September 2022 and will not be subject to a retentionobligation;



at its meeting of 25November 2020, allocation of Somfy–performance shares to 3 beneficiaries. The vesting of theseperformance shares is subject to the condition that theymustremainemployedbytheGroup.Finalvestingwilltakeplaceon28November 2022. The shares vested will be available from29November 2022 and will not be subject to a retentionobligation.

ACCOUNTSRECEIVABLEFROMEQUITYINVESTMENTS,BONDSRECEIVABLEANDOTHERRECEIVABLES

Receivables are carried at their nominal value. A provision forimpairmentisrecordedwhentheirestimatedrealisablevaluefallsbelow carrying value and based upon the probability of theirrecovery.Whentheequityofinvestmentsbecomesnegative,aprovisionforimpairment is recorded with reference to the above estimatedrealisablevalue.Accrued interest on bonds receivables are capitalised at eachyear-end.

FOREIGNCURRENCYDENOMINATEDTRANSACTIONS

Foreigncurrencydenominatedincomeandexpensesarerecordedattheirequivalentvalueatthetransactiondate.Foreigncurrencydenominated debts, receivables and cash are recognised in thebalance sheet at their exchange rate on the balance sheet date.The difference resulting from the translation of foreign currencydebtsand receivablesat thebalance sheetdateexchange rate isrecognisedinthebalancesheetasa“Translationadjustment”.At 31December 2020, “Asset” and “Liability” translationadjustments of €9,592thousand and €7thousand respectively,wereclassifiedunder“Otherreceivablesandaccruals”and“Otherliabilitiesandaccruals”,respectively.Unrealised foreign exchange losses resulting from the netexchangepositionbycurrencyrecordedonassetsandliabilitiesatthe balance sheet date are recorded as a provision for foreignexchangelosses.

BORROWINGSANDDEBTSFROMCREDITINSTITUTIONS

Borrowingsanddebtsfromcreditinstitutionsarerecordedonthebalance sheet at their net value.Accrued interest is recordedonthebalancesheetwiththerelatedborrowings.At 31December 2020, the company complied with all financialcovenantsimposedbybanksonitsborrowingfacilities.

HEDGINGTRANSACTIONS

Somfy SA has been applying the new ANC 2015-05 regulationrelatingtoforwardfinancialinstrumentsandhedgingtransactionssince1January2017.In thecontextof relationshipsqualifyingashedges, thecompanyrecognises the impactsof thehedging instrumenton the incomestatement on a symmetric basis, together with the income orexpenserelatedtothehedgeditem,irrespectiveofthemarketinwhichthehedginginstrumentsaretraded.In the case of isolated open positions, the company recordschanges in the value of derivatives on the balance sheet andprovisions are recognised for unrealised losses on thesederivatives.At31December2020,allfinancialinstrumentsenteredintobythecompanyqualifiedashedginginstruments.

E–CONSOLIDATINGENTITY—Somfy SA is a 52.65%-subsidiary of the company J.P.J.S.which istheconsolidatingparentcompany.

F-NOTESTOTHEPARENTCOMPANYFINANCIALSTATEMENTSAT31DECEMBER2020—

OPERATINGITEMSNOTE1—Somfy SA sales for the year to 31December 2020 were€3.9million, an increase compared with the previous year. Theoperating loss was €9.0million, compared with a loss of€9.8millionin2019.

SALESBREAKDOWNNOTE1.1

€thousands

France 2,242

EuropeanUnion 1,197

Non-EU 423

TOTAL 3,862

DIRECTORS’REMUNERATIONNOTE1.2

€thousands

Remunerationallotted

tomembersoftheManagementBoard– 1,168

tomembersoftheSupervisoryBoard– 374

Pensioncommitmentssubscribed N/A

WORKFORCEAT31DECEMBER2020NOTE1.3

Male Female Total

Managers&executives 8 3 11

In respect of 2020, the average headcount of managers &executiveswas11,aswasthecasein2019.

FINANCIALITEMSNOTE2—The net financial income of the Somfy SA holding company was€107.7million,comparedwith€122.1millionin2019,adeclineof€14.4million.Dividendsreceiveddecreasedby€19.2million.

EXTRAORDINARYITEMSNOTE3—Net extraordinary loss was €58thousand compared with€313thousand in2019,andwasprimarilycomprisedof lossesonfinancialreceivables.



INCOMETAXNOTE4—Anincometaxgainof€2.3millionwasrecognised,includinga€2.6milliontaxconsolidationprofit.

BREAKDOWNOFINCOMETAXAT31DECEMBER2020NOTE4.1

€thousands

Tax

Base Rate Amount

1.Currentresult

Netprofitfortheyear 98,673 32.02% -31,595

Taxadjustments:

long-termcapitalgainsandlosses– – – –

incomefromequityinvestments– -104,292 32.02% 33,394

other– -1,402 32.02% 449

SubtotalCurrentResult -7,021 32.02% 2,248

2.Extraordinaryresult

Netprofitfortheyear -58 32.02% 19

Taxadjustments:

long-termcapitalgainsandlosses– – – –

deductions– – – –

reinstatements– – – –

SubtotalExtraordinaryResult -58 32.02% 19

SubtotalTotaltheoreticaltax -7,078 32.02% 2,267

3.Othertaxitems

Taxpaidbygrouptaxconsolidationcompanies – – 19,079

Taxcharge/incomeforthetaxconsolidationgroup(excludingtotaltheoreticaltax) – – -18,734

Contributionondistributedearnings – – -246

Taxcharge/relieffrompreviousperiods – – -21

SubtotalOthertaxitems – – 78

TOTALINCOMETAX – – 2,345

Beforetax Tax Aftertax

Currentresult 98,673 2,248 100,921

Extraordinaryresult -58 19 -39

Othertaxitems – 78 78

ACCOUNTINGRESULT 98,615 2,345 100,960



TAXCONSOLIDATIONNOTE4.2

ThetaxconsolidationagreementsignedbetweenSomfySAanditsdirectandindirectsubsidiarieswasrenewedon1January2013foranindefiniteperiodoftime.

In accordance with the agreement, the difference calculatedbetweentheincometaxchargeableonthecombinedprofitsofthetaxconsolidationandthesumoftheGroupcompanies’individualtaxchargesiscreditedtoSomfySA,theGroup’sparentcompany.At 31December 2020, tax savings resulting from the transfer oflossesfromsubsidiariesareconsideredtobetaxincome.Shouldasubsidiaryceasetobeamemberofthetaxconsolidation,it will be compensated by Somfy SA in accordance with ajointly-agreedexitmethodology,takingaccountofthesituationatthatdate.

CurrentlytherearenoavailableGrouptaxlossestobeused.

Listofcompaniesincludedintaxconsolidation

SomfySA Parentcompany Cluses

SomfyActivitésSA Cluses

Simu Arc-les-Gray

CMC Cluses

DomisSA Rumilly

AutomatismesBFTFrance Saint-Priest

SEM-T Cluses

BFTSud-Est SaintLaurentduVar

Opendoors Cluses

Overkiz ÉpagnyMetz-Tessy

SomfyProtectbyMyfox Labège

NETPROFITNOTE5—Netprofittotalled€101.0million.

NON-CURRENTASSETSNOTE6—

GROSSNON-CURRENTASSETSNOTE6.1

€thousandsGrossvalue31/12/19

Increase Decrease Mergermovements

Othermovements

Grossvalue31/12/20

Intangibleassets 215 – – – – 215Property,plantandequipment 2 – – – – 2Financialassets 440,328 1,287 -10,549 – -1,014 430,051Equityinvestments* 406,886 – – – -1,014 405,871

Receivablesfromequityinvestments** 22,458 490 -7,382 – – 15,566

Otherfinancialassets 3,327 463 -457 – – 3,333

Bonds*** 7,658 334 -2,710 – – 5,282

Othermovements include a €1,400thousandnegative adjustment to the earnout on Somfy Protect byMyfox shares and the capitalisation of a*€386thousandreceivablerelatedtoSomfyColombia.Movementsinreceivablesfromequityinvestmentsislinkedtotherefundingorgrantingoffinancialadvancesmadetocertainsubsidiaries.**Bondreceivablesfellby€2,710thousandasaresultoftherevaluationandredemptionof2020instalmentsbyGaren.***TheincreasesalsorelatetoGaren(capitalisationof2020interest).

It should be noted that the value of the shares in the company under joint control Dooya, indirectly held by Somfy SA, amounts to€110,972thousandat31December2020.

AMORTISATIONANDDEPRECIATIONNOTE6.2

€thousandsAmountat31/12/19

Charges Reversals Mergermovements

Othermovements

Amountat31/12/20

Intangibleassets 214 – – – – 214Concessions,patentsandlicences 214 – – – – 214

Property,plantandequipment 2 – – – – 2

216 – – – – 216



WRITEDOWNOFNON-CURRENTASSETSNOTE6.3


Charges Reversalsused

Reversalsunused

Mergermovements

Othermovements

Amountat31/12/20

Equityinvestments* 29,638 715 – -4,562 – – 25,791

Receivablesfromequityinvestments 5,683 201 – -806 – – 5,078

Otherfinancialassets** 2,005 – -1,036 – – – 969

37,327 916 -1,036 -5,368 – – 31,839

NetreversalsforthefinancialyearprimarilyrelatetosharesinLianDa.*ThesereversalsprimarilyrelatetoGaren.**

ANALYSISOFMATURITYOFRECEIVABLESNOTE7—€thousands Totalamount Lessthan1year Morethan1year

Non-currentreceivables

Receivablesfromequityinvestments 15,566 649 14,917

Otherfinancialassets 3,333 – 3,333

Bonds 5,282 1,083 4,198

Currentreceivables

Tradereceivables 1,050 1,050 –

Miscellaneousreceivables 43,378 43,378 –

Prepaidexpensesandtranslationadjustment 9,629 9,629 –

78,238 55,790 22,448

Otherreceivablesmainlycomprise€29,188thousandofintragroupcurrentaccounts,primarilyoriginatingfromtheimplementationofcashpoolingatGrouplevel,aswellasreceivablesonthedisposalofCIATtotalling€9,652thousand.

DEFERREDINCOMEANDOTHERRECEIVABLESNOTE8—€thousands

Dividends –

Accruedinterestoncashaccounts 5

Tradereceivables,invoicestobeissued 385

Government,taxandduties 5,990

Other(incl.CIAT) 9,759

Thebalanceoftheitem“Government,taxandduties”mainlyincludestaxcreditsnotyetallocated.

ASSETTRANSLATIONADJUSTMENTSINFOREIGNCURRENCYDENOMINATEDDEBTSNOTE9ANDRECEIVABLES

—Assetsideimpact

€thousands Total Provisionforliability

Bonds 6,778 6,778

Receivablesfromequityinvestments 2,685 2,685

Miscellaneousreceivables 129 129

Financialdebts – –

9,592 9,592



SHAREHOLDERS’EQUITYNOTE10—

STATEMENTOFCHANGESINSHAREHOLDERS’EQUITYNOTE10.1

€thousands

Balanceat31/12/19

beforeallocation

ofnetprofit

Allocationofnetprofit

31/12/19

2020movements

Balanceat31/12/20

beforeallocation

ofnetprofit

Proposedallocation

of2020

netprofit

Balanceat31/12/20

afterallocation

ofnetprofit

Sharecapital 7,400 – – 7,400 – 7,400

Sharepremium 1,866 – – 1,866 – 1,866

Revaluationreserve 5,929 – – 5,929 – 5,929

Legalreserve 740 – – 740 – 740

Regulatedreserves – – – – – –

Otherreserves 523,200 72,444 – 595,644 35,784 631,428

Retainedearnings 3,706 -3,706 3,274 3,274 -3,274 –

Netprofit 114,988 -114,988 100,960 100,960 -100,960 –

Regulatedprovisions – – – – – –

657,828 -46,250 104,234 715,812 -68,450 647,362

The€3.3millionchangein2020“Retainedearnings”correspondstodividendsnotpaidtotreasuryshares.

COMPOSITIONOFSHARECAPITALNOTE10.2

Euros Numberofshares Parvalue

Shares–

Atthestartoftheyear 37,000,000 0.2

Attheendoftheyear 37,000,000 0.2

Convertiblebondsandsimilarsecurities– – –

TREASURYSHARESNOTE10.3

€thousands 31/12/19 Increase Decrease Transfer 31/12/20

Stockoptionsandfreeshares €thousands 49,348 – – – 49,348

number 1,387,241 – – – 1,387,241

Liquiditycontract €thousands 648 2,966 -2,669 – 945

number 7,636 28,717 -29,239 – 7,114

Sharesretainedforpotentialacquisitionsandcancellation €thousands 48,056 – – – 48,056

number 1,221,770 – – – 1,221,770

Treasuryshares €thousands – – – – –

number – – – – –

TOTALTREASURYSHARES€thousands 98,052 2,966 -2,669 – 98,349

number 2,616,647 28,717 -29,239 – 2,616,125



NOTE10.4FREESHAREPLANS

Plandate Plann° Numberof

benefi-ciaries

Numberofsharesallocated

Pricepershare(€)

Allocationdate

Vestingdate

Revisionofshare

numberrelatedtopresence

andperformance

conditions

Numberofsharesdefinitelyallocatedin2020

Numberofshares

potentiallyvestedat31/12/20

12/11/18 Myfoxplan AGA4 7 5,239 66.26 30/06/21 01/07/21 – – 5,239

20/05/19 AGAP2021plan 45 32,370 75.62 30/06/21 01/07/21 -11,192 – 21,178

20/05/19 AGA2021plan 128 37,637 75.62 30/06/21 01/07/21 -13,012 – 24,625

15/11/19 AGAP2021plann°2 1 1,080 81.51 30/06/21 17/11/21 -237 – 843

15/11/19SecurityBusiness

Groupplan10 6,015 81.51 30/06/21 17/11/21 -6,015 – –

31/08/20 AGAP2022plan 52 17,340 100.83 15/09/22 16/09/22 -5,150 – 12,190

25/11/20 AGAP2022plann°2 3 516 126.24 28/11/22 29/11/22 -86 – 430

BALANCESHEETPROVISIONSNOTE11—


Charges Reversalsused

Reversalsunused

Mergermovements

Othermovements

Amountat31/12/20

Regulatedprovisions – – – – – – –

Provisionsforliabilitiesandcharges(incl.exchangelosses) 6,275 3,442 – – – – 9,717

6,275 3,442 – – – – 9,717

ANALYSISOFMATURITYOFPAYABLESNOTE12—

€thousands

Totalamount Lessthan1year Morethan1yearandlessthan5years

Morethan5years

Liabilities

Borrowingsanddebtsfromcreditinstitutions 5,883 328 5,555 –

Miscellaneousloansandborrowings – – – –

Operatingliabilities

Tradepayablesandrelateditems 1,710 1,710 – –

Taxandsocialsecuritypayable 278 278 – –

Otherliabilities 305,910 305,910 – –

Deferredincomeandtranslationadjustment 7 7 – –

313,788 308,233 5,555 –

Otherliabilitiesmainlycomprise€304,375thousandofintragroupcurrentaccounts,primarilyoriginatingfromtheimplementationofcashpoolingatGrouplevel.



ACCRUEDEXPENSESNOTE13—€thousands

Accruedloaninterest –

Tradepayables,invoicesnotreceived 353

Employees,statutorybodies,government,dutiesandtaxes 278

Miscellaneous –

Attendancefees –

OFF-BALANCESHEETCOMMITMENTSNOTE14—

FINANCIALCOMMITMENTSNOTE14.1

€thousands 31/12/20 31/12/19

Guaranteesanddepositsreceived– 6,729 7,931

Unusedcreditfacilities– 174,000 190,000

TOTALCOMMITMENTSRECEIVED 180,729 197,931

€thousands 31/12/20 31/12/19

Guaranteesanddepositsgiven– – –

Interestonoutstandingloans– – –

LiabilityguaranteeonCIATdisposal– 17,796 17,796

Other– – –

TOTALCOMMITMENTSGIVEN 17,796 17,796

SECURITISEDDEBTNOTE14.2

€thousands

Borrowingsanddebtsfromcreditinstitutions –



MARKETVALUEOFDERIVATIVESNOTE15—

FOREIGNEXCHANGERISKNOTE15.1

Somfy’s exposure to foreign exchange risk is primarily related to its operational activities (intragroup sales of manufactured productsdistributed by commercial subsidiaries outside the Euro zone, these sales being denominated in local currencies, and purchasesdenominated in local currencies). Subsidiaries’ hedges in these areas are made through the parent company Somfy SA. Commercialtransactions are covered for a periodof less than12months. Themainhedging instruments usually usedby the company are forwardpurchasesandsales.

Foreignexchangehedgesbycurrency




AUD 7,367 – 7,367 -186

CAD 3,262 – 3,262 7

CHF 4,073 -1,203 2,870 43

CNY – -17,451 -17,451 262

CZK – -4,001 -4,001 29

GBP 10,122 -4,173 5,949 -28

HKD 809 -347 462 27

HUF 409 – 409 -1

ILS 3,929 – 3,929 -29

JPY 2,925 – 2,925 25

MXN 1,028 – 1,028 -35

NOK 2,407 – 2,407 -118

PLN 2,522 – 2,522 -5

RON 565 – 565 -7

RUB 1,181 – 1,181 -21

SEK 2,173 – 2,173 -98

SGD 1,535 -247 1,289 -2

THB 381 – 381 -3

TRY 2,271 – 2,271 -70

USD – -8,475 -8,475 -342

46,961 -35,897 11,064 -554






AUD 3,032 – 3,032 2

CAD 2,877 – 2,877 -1

CHF 6,541 – 6,541 -105

CNY – -15,472 -15,472 236

CZK – -4,762 -4,762 95

GBP 8,486 – 8,486 -576

HKD 1,623 -915 709 -9

HUF 197 – 197 –

ILS 4,763 -940 3,823 -90

JPY 4,084 -246 3,838 66

MXN 1,051 -113 938 -49

NOK 831 -233 598 22

PLN 3,641 -2,608 1,034 -17

RON 165 – 165 –

RUB 1,021 – 1,021 -39

SEK 2,680 -57 2,623 -56

SGD 1,999 – 1,999 -29

THB 560 – 560 -21

TRY 1,436 -165 1,272 -55

USD 2,225 -12,996 -10,771 113

ZAR – -24 -24 –

47,213 -38,531 8,682 -511

Foreignexchangehedgesbytype








46,961 -35,897 11,064 -554








47,213 -38,531 8,682 -511



RAWMATERIALRISKNOTE15.2

SomfySAprotectsitsmanufacturingsubsidiariesagainstfluctuationsinthepriceofrawmaterialsviahedgingagreementsformaterialsonthefinancialmarkets(copperandzincpaperhedging)oncomponentsthatcannotbephysicallycovered.Incomeandexpensesoncompletedhedgingtransactionshavebeenreinvoicedinfulltothesubsidiariesconcerned.The unrealised loss resulting from the recognition at fair value of the financial instruments, whose nature as a hedge cannot bedemonstrated,wasrecognisedattheendofthefinancialyear.At31December2020,theeffectiveportionofhedgeswasvaluedat€0.7millionandtheineffectiveportionwasnil.

31/12/20

Tonnes Hedgingofitemsoff-balancesheet

€thousands


Types

Copper 170 830 250 Swap

Zinc 1,300 2,520 407 Swap

1,470 3,350 657

31/12/19

Tonnes Hedgingofitemsoff-balancesheet

€thousands


Types

Copper 700 3,584 230 Swap

Zinc 1,760 3,571 -69 Swap

2,460 7,155 160

STATUTORYAUDITORS’FEESNOTE16—The amount of the Statutory Auditors’ fees, excluding tax and disbursements, paid by Somfy SA (issuer) is provided in note14 to theconsolidatedfinancialstatements.

SUBSIDIARIESANDINVESTMENTSNOTE17—

€thousands

Sharecapital

andpremium

Reservesandretainedearningsbefore

allocationofnetprofit

Shareofcapital

held(%)

Profit/(loss)forthelastfinancial

year

Sales Dividendsreceived

Subsidiaries(atleast34%ofsharecapitalheldbythecompany)

DSGCoordinationCenterSA 668 18 100.00% 275 – –

SomfyActivitésSA 35,000 146,634 100.00% 63,389 512,785 –

CMC 8 168 100.00% 453 – –

Somfybat 6,830 13,425 100.00% 1,793 – –

SomfyLtd 146 957 100.00% 731 15,254 –

SomfyPTY.Limited 306 2,477 100.00% 1,863 16,575 341

N.VSomfyS.A 348 2,794 100.00% 3,413 41,595 –

SomfyBrasilLTDA 11,188 -11,533 99.99% 170 4,646 –

SomfyGmbH(Germany) 1,500 17,095 100.00% 13,348 195,597 –

SomfyKereskedelmiKft 787 132 100.00% 570 5,327 –

Somfyspols.r.o. 177 234 100.00% 1,858 29,033 –

Somfyspolkazograniczonaodpowiedzialnoscia 132 45 100.00% 3,847 58,814 –

SomfyS.R.L. 307 198 100.00% 218 2,869 –

ChusikHoesaSomfy 314 1,889 100.00% 180 7,506 –

SomfyItaliaSRL 2,000 16,443 95.00% 6,856 24,941 –

SomfyEspañaSA 10,010 79,891 100.00% 12,138 30,818 10,000

SomfySystemsInc 8,786 12,357 100.00% 7,774 94,127 –

SomfySA(Suisse) 30 1,161 100.00% 3,176 34,208 –



€thousands

Sharecapital

andpremium

Reservesandretainedearningsbefore

allocationofnetprofit

Shareofcapital

held(%)

Profit/(loss)forthelastfinancial

year

Sales Dividendsreceived

SomfySwedenAktiebolag 71 1,479 100.00% 704 8,476 –

SomfyPTELtd 533 -28 100.00% -317 2,641 –

SomfyCoLimited 10,423 1,930 100.00% -1,136 1,765 170

ZhejiangLianDaScienceandTechnologyCo.,Ltd. 6,960 -3,280 95.00% 5,275 42,780 –

SomfyMiddleEastCo.Ltd 62 5,278 100.00% 1,309 22,311 –

SomfyMexico,S.A.DEC.V. 27 1,215 99.75% 236 3,654 –

SomfyKabushikiKaisha 205 1,845 100.00% 539 11,737 –

PROMOFIBV 91 446 100.00% 33,497 – 33,500

Simu 5,000 17,588 100.00% 9,594 99,594 –

SomfyULC 904 1,383 100.00% 1,347 12,105 –

ArveFinance 3,010 -1,620 50.17% -9 – –

SomfySIA 521 130 100.00% 337 4,927 –

SomfySouthAfricaPTYLimited 410 363 100.00% 321 1,926 –

SomfyColombiaSAS 28 49 100.00% -119 645 –

DomisSA 1,115 1,652 100.00% 737 13,086 –

SomfyLimitedLiabilityCompany 1,104 -37 100.00% 692 8,062 –

SisaHomeAutomationLtd 249 5,180 100.00% 919 12,480 –

SomfyEVOtomasyonSistemleriTicaretLtdSti 801 1,832 99.86% 2,251 11,531 –

AsianCapitalInternationalLimited 113,776 4,735 100.00% -264 – –

SomfyMaroc 60 344 100.00% 374 5,285 –

SomfyHellasSA 750 717 100.00% 558 9,555 –

SomfyIndiaPvtLtd 1,706 -384 100.00% -22 3,584 –

SomfyBulgariaAD 102 370 99.90% 241 1,723 –

Somfy(Thailand)Co.,Ltd 306 855 99.98% 27 3,240 –

LimitedLiabilityCompanySomfy 370 -109 100.00% 125 601 –

SomfyServices 99 -53 50.00% -2 – –

SomfyEgypt 140 -208 99.91% 16 – –

SOPEMspolkazograniczonaodpowiedzialnoscia 90,219 -6,537 100.00% 22,152 154,522 –

GABRParticipaçõesLTDA 3,139 -5,024 99.99% -25 – –

SomfyArgentinaS.R.L. 1,151 -1,233 99.77% 103 2,748 –

SomfyNorwayAS 67 250 100.00% 524 8,783 –

SomfyEasternEuropeAreaspZoo 36 262 100.00% 36 – –

SomfyAsia-PacificCoLtd 76 512 100.00% -42 – –

Opendoors 500 -1,610 100.00% 46 23 –

SomfyProtectbyMyfox 583 -118 100.00% -2,917 16,690 –

SomfySaudiArabia 6,350 -1,074 75.00% 352 7,963 –

€thousands

Loansandadvancesgrantedtothecompaniesabove,notyetrepaid 4,428

Totalguaranteesgrantedtothecompaniesabove –

Dividendsreceivedfromtheabovecompaniesduringtheyear 105,748



EQUITYINVESTMENTSAT31DECEMBER2020NOTE18—

€thousands Grossvalue Netvalue Quotedvalue

Equityinvestments

500,000 DSGCoordinationCenterSAshares 468 468 –

119,994 Vimartshares 63 23 –

1,749,999 SomfyActivitésSAshares 23,286 23,286 –

30,000 SomfyGmbH(Germany)shares 4,555 4,555 –

3,000 SomfySwedenAktiebolagshares 534 534 –

394 PROMOFIBVshares 1,084 1,084 –

230 SomfySystemsIncshares 10,167 10,167 –

1,900,000 SomfyItaliaSRLshares 2,271 2,271 –

50 SomfySA(Suisse)shares 152 152 –

660 SomfyKabushikiKaishashares 194 194 –

35,000 SomfyEspañaSAshares 93,161 93,161 –

13,995 N.VSomfyS.Ashares 334 334 –

35,999 SomfyMiddleEastCo.Ltdshares 72 72 –

100,000 SomfyLtdshares 144 144 –

500,000 SomfyPTY.Limitedshares 350 350 –

80,000 ChusikHoesaSomfyshares 460 460 –

1,100,000 SomfyPTELtdshares 514 189 –

500 CMCshares 8 8 –

2,099,990 SomfyCoLimitedshares 10,734 10,734 –

1 Somfyspols.r.o.share 1,012 1,012 –

676 Somfyspolkazograniczonaodpowiedzialnosciashares 1,423 1,423 –

1 SomfyKereskedelmiKftshare 1,865 1,489 –

399 SomfyMexico,S.A.DEC.V.shares 44 44 –

36,378,338 SomfyBrasilLTDAshares 11,933 – –

250,000 Simushares 23,937 23,937 –

3,744,299 SomfyIndiaPvtLtdshares 1,696 1,696 –

52,250 ZhejiangLianDaScienceandTechnologyCo.,Ltd.shares 7,307 3,654 –

124,274 SomfyS.R.L.shares 311 311 –

100,000 SomfyULCshares 333 333 –

1,510,000 ArveFinanceshares 1,510 693 –

521,197 SomfySIAshares 822 822 –

4,728,000 SomfySouthAfricaPTYLimitedshares 387 387 –

71,409 SomfyColombiaSASshares 416 – –

2,499,999 SomfyHellasSAshares 750 750 –

6,974 SomfyMarocshares 650 650 –

85,827 DomisSAshares 3,068 3,068 –

1 SomfyLimitedLiabilityCompanyshare 1,152 1,152 –

14,000,000 SisaHomeAutomationLtdshares 270 270 –



€thousands Grossvalue Netvalue Quotedvalue

16,776 SomfyEVOtomasyonSistemleriTicaretLtdStishares 875 875 –

1,220,956,515 AsianCapitalInternationalLimitedshares 107,369 107,369 –

999 SomfyBulgariaADshares 102 102 –

9,998 Somfy(Thailand)Co.,Ltdshares 304 304 –

1 LimitedLiabilityCompanySomfyshare 381 381 –

1,000 SomfyServicesshares 52 52 –

1,099 SomfyEgyptshares 153 – –

107,000 SOPEMspolkazograniczonaodpowiedzialnosciashares 40,983 40,983 –

8,999,100 GABRParticipaçõesLTDAshares 3,016 – –

7,684,372 SomfyArgentinaS.R.L.shares 563 – –

500 SomfyNorwayASshares 57 57 –

1,500 SomfyEasternEuropeAreaspZooshares 36 36 –

650,000 SomfyAsia-PacificCoLtdshares 77 77 –

50,000 Opendoorsshares 4,500 – –

777,724 SomfyProtectbyMyfoxshares 24,954 24,954 –

400,005 SomfySaudiArabiashares 4,730 4,730 –

379,449 Somfybatshares 10,280 10,280 –

405,871 380,080 –

€thousands GrossValue NetValue QuotedValue

Portfolioinvestments – – –

Marketablesecurities

Treasuryshares 98,349 96,799 362,595

Marketablesecurities – – –

98,349 96,799 362,595

171

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LEGAL DOCUMENTS

StatutoryAuditors’reportontheparentcompanyfinancialstatements172

StatutoryAuditors’specialreportonregulatedagreements176

StatutoryAuditors’reportontheconsolidatedfinancialstatements177

ReportbyoneoftheStatutoryAuditors,appointedasIndependentThirdParty,ontheconsolidatednon-financialstatement

180

StatutoryAuditors’reportontheauthorisationtoallocatesharepurchaseoptions

183

DraftresolutionstotheCombinedGeneralMeetingof2June2021184

StatementfromtheindividualresponsiblefortheAnnualFinancialReport188

07

07 LEGAL DOCUMENTS


LEGAL DOCUMENTS

STATUTORY AUDITORS’ REPORT ON THE PARENT COMPANY FINANCIAL STATEMENTS

TotheGeneralMeetingofSomfySA,

OPINION—In compliance with the engagement entrusted to us by yourGeneral Meeting, we have audited the accompanying parentcompany financial statements of Somfy SA for the year ended31December2020.Inouropinion,theparentcompanyfinancialstatementsprovideatrueandfairviewof theassetsand liabilitiesandof thefinancialpositionofthecompanyat31December2020andoftheresultsofitsoperations fortheyearthenended inaccordancewithFrenchaccountingprinciplesandmethods.Theauditopinionexpressedabove isconsistentwiththecontentofourreporttotheAuditCommittee.

BASISFOROPINION—AUDITFRAMEWORK

We have performed our audit in accordance with professionalstandardsapplicableinFrance.Webelievethattheauditevidencewehaveobtained is sufficientandappropriate toprovideabasisforouropinion.Our responsibilities under those standards are further describedherein in the section “Statutory Auditors’ responsibilities for theauditoftheparentcompanyfinancialstatements”ofthisreport.

INDEPENDENCE

WehaveconductedourauditengagementincompliancewiththeindependencerulessetoutbytheCommercialCodeandtheCodeofEthicsforStatutoryAuditors,fortheperiodfrom1January2020to thedateofour reportand specificallywedidnotprovideanyprohibited non-audit services referred to in Article5(1) ofregulation(EU)n°537/2014.

JUSTIFICATIONOFASSESSMENTS–KEYAUDITMATTERS—Due to the global crisis related to the Covid-19 pandemic, thefinancial statements of this period have been prepared andaudited under specific conditions. Indeed, this crisis and theexceptionalmeasurestakeninthecontextofthestateofsanitaryemergency have had numerous consequences for companies,particularlyontheiroperationsandtheirfinancing,andhaveledtogreater uncertainties on their future prospects. Thosemeasures,suchas travel restrictions and remoteworking, havealsohadanimpact on the companies’ internal organisation and theperformanceoftheaudits.It is inthiscomplexandevolvingcontextthat, inaccordancewiththe requirements of ArticlesL.823-9 and R.823-7 of theCommercialCode relating to the justificationofourassessments,weinformyouofthekeyauditmattersrelatingtorisksofmaterialmisstatementwhich,inourprofessionaljudgement,wereofmostsignificance in our audit of the parent company financialstatements for the financial year just ended, as well as howweaddressedthoserisks.Thesematterswereaddressed in the contextofourauditof theparent company financial statements as awhole, and in formingouropinion thereon.Accordingly,wedonotprovideanyopiniononspecificitemsoftheparentcompanyfinancialstatements.

07 LEGAL DOCUMENTS


MEASUREMENTOFTHEEQUITYINVESTMENTSINTHEJOINTLYCONTROLLEDENTITYDOOYA

Riskidentified Ourresponse

Thenet valueof theequity investments in the jointly controlledentity Dooya, indirectly held by Somfy SA, stood at €111millionwith total assets of €1,039.3million at 31December 2020. Asspecified in noteD “Equity investments” to theparent companyfinancial statements, the carrying value of these equityinvestments is determinedon the basis of severalmeasurementfactors, including net assets at the year-end, the level ofprofitability,thefutureoutlook,andthesharepriceinthecaseoflisted companies. This carrying value is then comparedwith thenet book value, in order to assess the need to record animpairmentchargeornot.

We have considered that the measurement of these equityinvestments in the jointly controlled entity Dooya is a key auditmatterbecausethedeterminationoftheircarryingvaluerequirestheuseofestimatesorjudgementsonthepartofManagementindetermining the carrying value used and the assessment of themarketoutlookoftheentityconcerned.

Our work as part of the audit of the parent company financialstatements specifically consisted of, with the support of ourvaluationspecialists:

reviewingtheproceduresforimplementingtheimpairmenttest–oftheequityinvestmentsinthejointlycontrolledentityDooya;

assessingtheconsistencyoftheassumptions inrelationtothe–historic performances andoperatingbudgets approvedby theBoardofDirectorsofDooya,incorporatinggrowthforecastsforsubsequent years, in particular by taking into account thepotentialimpactsoftheCovid-19pandemicintheseforecasts;

performingsensitivityanalysesonimpairmenttests;–

comparing the carrying valueof theequity investments in the–jointlycontrolledentityDooyawiththenetbookvalueofsaidequity investments and, where applicable, verifying theimpairmentamountrecorded.

CLASSIFICATIONOFLITIGATIONSASCONTINGENTLIABILITIES


Thecompanyhascontingentliabilitiesrelatingtolegal,arbitrationor regulatory proceedings arising in the normal course of itsbusiness. Known or ongoing claims involving Somfy SA werereviewedattheendofthereportingperiod.Basedontheadviceoflegalcounsel,allprovisionsdeemednecessaryhavebeenmadetocovertherelatedrisks.

Some of these risks are classified as contingent liabilities, asdescribedinnoteB“Contingentliabilities”totheparentcompanyfinancial statements and, in this regard, no provision has beenmadefortheminyourcompany’s financialstatements.Wehaveconsidered that the classification of litigations as contingentliabilitiesisakeyauditmatter,inviewoftheamountsinquestion,and the level of judgement required from Management todeterminethem.

Ourworkaspartof theauditof thecompany’sparentcompanyfinancialstatementsspecificallyconsistedof:

reviewing the procedures implemented by your company to–identifyandassesstheserisks;

familiarising ourselveswith the risk assessment performed by–Management and the corresponding documentation, andreviewing the written consultations provided by externaladvisers,whereapplicable;

analysing the answers provided to our requests for–confirmation,forwardedtothecompany’sexternaladvisers;

assessing the main risks identified, and reviewing the–assumptions used by Management to classify these risks ascontingentliabilities;

assessing theappropriatenessof the informationpresented in–noteB“Contingent liabilities” to theparentcompany financialstatements.

SPECIFICVERIFICATIONS—Wehavealsoperformedthespecificverificationsrequiredbylawand regulations, in accordance with professional standardsapplicableinFrance.

INFORMATIONPROVIDEDREGARDINGTHEFINANCIALPOSITIONANDTHEPARENTCOMPANYFINANCIALSTATEMENTSINTHEMANAGEMENTREPORTANDINTHEOTHERDOCUMENTSSENTTOSHAREHOLDERS

We have no observations to make concerning the fairness andconsistencywith theparent company financial statementsof theinformationgivenintheManagementBoard’smanagementreportand in theotherdocuments sent to the shareholders concerningthe financial situation and the parent company financialstatements.

We certify that the information relating to payment termsmentionedinArticleD.441-6oftheCommercialCodeistrueandfair,andconsistentwiththeparentcompanyfinancialstatements.

REPORTONCORPORATEGOVERNANCE

We hereby certify that the information required byArticlesL.225-37-4, L.22-10-10and L.22-10-9of theCommercialCode is included in the Supervisory Board’s report on corporategovernance.Concerning the information provided in accordance withprovisions of ArticleL.22-10-9 of the Commercial Code onremunerationandbenefitspaidorallocatedtocorporateofficersas well as commitments given in their favour, we have verifiedtheir consistency with the financial statements or with the dataused in the preparation of these financial statements and ifnecessary, with data collected by your company from entitiesunder its control and included in the scope of consolidation. On

07 LEGAL DOCUMENTS


thebasisofthiswork,weconfirmtheaccuracyandthefairnessofthisinformation.In thecaseof the information relating to theelements thatyourcompanyhasconsideredaslikelytohaveanimpactintheeventofa public tender or exchange offer, and provided pursuant to theprovisions of ArticleL.22-10-11 of the Commercial Code, wechecked the consistency of this informationwith the documentsfromwhichitwasderived,andwhichweredisclosedtous.Onthebasis of this work, we have no observations to make on thisinformation.

OTHERINFORMATION

As required by law,we ensured that the information concerningthe identity of holders of the share capital and voting rightswasprovidedtoyouinthemanagementreport.

OTHERVERIFICATIONORINFORMATIONPROVIDEDFORBYLEGALANDREGULATORYREQUIREMENTS—FORMATOFPRESENTATIONOFTHEPARENTCOMPANYFINANCIALSTATEMENTSINTENDEDTOBEINCLUDEDINTHEANNUALFINANCIALREPORT

In accordance with paragraph III of Article 222-3 of the AMFgeneral regulations, the company’sManagement informed us onitsdecision topostpone thepresentationof theparent companyfinancial statements in compliance with the European singleelectronicformatasdefinedintheEuropeandelegatedregulationn°2019/815of17December2018to financialyearsbeginningonorafter1January2021.Therefore,thisreportdoesnot includeaconclusiononthecompliancewiththisformatofthepresentationof the parent company financial statements intended to beincluded intheAnnualFinancialReportmentioned inparagraphIofArticleL.451-1-2oftheMonetaryandFinancialCode.

APPOINTMENTOFTHESTATUTORYAUDITORS

We were appointed as Statutory Auditors of Somfy SA by yourGeneralMeetingsof24May2016forKPMGSAand12May2010forERNST&YOUNGetAutres.At 31December 2020, KPMGSA was in its fifth year ofuninterrupted engagement and ERNST& YOUNG et Autres in itseleventhyear.Previously,ERNST&YOUNGAudithadalsobeenStatutoryAuditorfrom1993.

RESPONSIBILITIESOFMANAGEMENTANDINDIVIDUALSINCHARGEOFCORPORATEGOVERNANCEINRELATIONTOTHEPARENTCOMPANYFINANCIALSTATEMENTS—Management is responsible for the preparation and fairpresentation of the parent company financial statements inaccordance with French accounting principles andmethods, andforsuch internalcontrolasManagementdetermines isnecessarytoenablethepreparationofparentcompanyfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

In preparing the parent company financial statements,Management isresponsibleforassessingthecompany’sabilitytocontinue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis ofaccounting unless it is expected to liquidate the company or toceaseitsoperations.The Audit Committee is responsible for monitoring the financialreporting process and the effectiveness of internal control andrisks management systems and, where applicable, its internalaudit,regardingtheaccountingandfinancialreportingprocedures.Theparentcompany financial statementshavebeenpreparedbytheManagementBoard.

STATUTORYAUDITORS’RESPONSIBILITIESFORTHEAUDITOFTHEPARENTCOMPANYFINANCIALSTATEMENTS—AUDITOBJECTIVESANDAPPROACH

Our role is to issue a report on the parent company financialstatements.Ourobjectiveistoobtainreasonableassuranceaboutwhethertheparentcompanyfinancialstatementsasawholearefree frommaterialmisstatement. Reasonable assurance is a highlevelofassurance,butisnotaguaranteethatanauditconductedin accordance with professional standards will always detect amaterial misstatement when it exists. Misstatements can arisefromfraudorerrorandareconsideredmaterial if, individuallyorin theaggregate, theycould reasonablybeexpected to influencethe economic decisions that users take on the basis of theseparentcompanyfinancialstatements.As specified in ArticleL.823-10-1 of the Commercial Code, ourstatutoryauditdoesnot includeassuranceon theviabilityof thecompanyorthequalityofmanagementofthecompany.As part of an audit conducted in accordance with professionalstandards applicable in France, the Statutory Auditor exercisesprofessional judgement throughout the audit. Furthermore, theStatutoryAuditor:

identifiesandassessestherisksofmaterialmisstatementofthe–parentcompany financial statements,whetherdue to fraudorerror, designs and performs audit procedures responsive tothose risks, and obtains audit evidence considered to besufficientandappropriatetoprovideabasisforhisopinion.Therisk of not detecting a material misstatement resulting fromfraud ishigher than forone resulting fromerror,as fraudmayinvolve collusion, forgery, intentional omissions,misrepresentations,ortheoverrideofinternalcontrol;obtains an understanding of internal control relevant to the–auditinordertodesignauditproceduresthatareappropriateinthe circumstances, but not for the purpose of expressing anopinionontheeffectivenessoftheinternalcontrol;evaluates the appropriateness of accounting policies used and–the reasonableness of accounting estimates and relateddisclosures made by Management in the parent companyfinancialstatements;

07 LEGAL DOCUMENTS


assessestheappropriatenessofManagement’suseofthegoing–concern basis of accounting and, based on the audit evidenceobtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on thecompany’s ability to continue as a going concern. Thisassessment is basedon the audit evidenceobtainedup to thedate of his audit report. However, future events or conditionsmay cause the company to cease to continue as a goingconcern. If the Statutory Auditor concludes that a materialuncertainty exists, there is a requirement to drawattention inthe audit report to the related disclosures in the parentcompany financial statements or, if such disclosures are notprovidedorinadequate,toissueaqualifiedoradverseopinion;evaluates the overall presentation of the parent company–financial statements and assesses whether these statementsrepresent the underlying transactions and events in amannerthatachievesfairpresentation.

REPORTTOTHEAUDITCOMMITTEE

We submit a report to the Audit Committee which includes inparticular a description of the scope of the audit and the auditprogramme implemented,aswellas the resultsofouraudit.Wealso report, if any, significant deficiencies in internal controlregarding the procedures relating to the preparation andprocessing of accounting and financial information that we haveidentified.Our report to the Committee includes the risks of materialmisstatement that, in our professional judgement, were ofmostsignificance in the audit of the parent company financialstatementsofthecurrentperiodandwhicharethereforethekeyauditmatters,thatwearerequiredtodescribeinthisreport.We also provide the Audit Committee with the declarationprovidedforinArticle6ofregulation(EU)n°537/2014,confirmingour independence within the meaning of the rules applicable inFrance such as they are set in particular by ArticlesL.822-10 toL.822-14 of the Commercial Code and in the Code of Ethics forStatutoryAuditors.Whereappropriate,wediscusswiththeAuditCommittee the risks thatmay reasonably be thought to bear onourindependence,andtherelatedsafeguards.

Lyon,27April2021TheStatutoryAuditors

KPMGAuditADepartmentofKPMGSA

StéphaneDevinPartner

ERNST&YOUNGetAutresSylvainLauria

Partner

07 LEGAL DOCUMENTS


STATUTORY AUDITORS’ SPECIAL REPORT ON REGULATED AGREEMENTS


As Statutory Auditors to your company, we hereby present ourreportonregulatedagreements.Itisourresponsibilitytoinformyou,basedontheinformationthathasbeengiventous,ofthekeyfeaturesandtermsandconditions,as well as the grounds for the company’s interest, of theagreementsofwhichwehavebeenmadeawareor thatwemayhave discovered as part of our assignment, without having tocomment on their usefulness and validity or to search for othersuchagreements.PursuanttotheprovisionsofArticleR.225-58ofthe Commercial Code, it is your role to assess the interest inconcludingtheseagreements,withaviewtoapprovingthem.Furthermore,itisourresponsibility,ifapplicable,toinformyouofdisclosures requiredbyArticleR.225-58of theCommercial Coderelative to the implementation during the year just ended ofagreementsalreadyapprovedbytheGeneralMeeting.

Wehaveperformedtheduediligencewedeemednecessarywithregard to theprofessional standardsof theCompagnieNationaledesCommissairesauxComptesinrelationtothisassignment.

AGREEMENTSSUBMITTEDFORAPPROVALTOTHEGENERALMEETING—We hereby inform you that we have not been advised of anyagreements authorised and concluded during the financial yearthat required approval from the General Meeting pursuant toArticleL.225-86oftheCommercialCode.

AGREEMENTSALREADYAPPROVEDBYTHEGENERALMEETING—Wewerenotmadeawareofanyagreement,previouslyapprovedby the General Meeting and which continued to be executedduringthefinancialyearjustended.





Partner

07 LEGAL DOCUMENTS


STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS


OPINION—In compliance with the engagement entrusted to us by yourGeneralMeeting,wehaveauditedtheaccompanyingconsolidatedfinancialstatementsofSomfySAfortheyearended31December2020.In our opinion, the consolidated financial statements provide atrueandfairviewof theassetsand liabilitiesandof thefinancialpositionoftheGroupat31December2020andoftheresultsofitsoperations for the year then ended in accordance withInternational financial reporting Standards as adopted by theEuropeanUnion.Theauditopinionexpressedabove isconsistentwiththecontentofourreporttotheAuditCommittee.

BASISFOROPINION—AUDITFRAMEWORK

We have performed our audit in accordance with professionalstandardsapplicableinFrance.Webelievethattheauditevidencewehaveobtained is sufficientandappropriate toprovideabasisforouropinion.Our responsibilities under those standards are further describedherein in the section “Statutory Auditors’ responsibilities for theauditoftheconsolidatedfinancialstatements”ofthisreport.

INDEPENDENCE

WehaveconductedourauditengagementincompliancewiththeindependencerulessetoutbytheCommercialCodeandtheCodeofEthicsforStatutoryAuditors,fortheperiodfrom1January2020to thedateofour reportand specificallywedidnotprovideanyprohibited non-audit services referred to in Article5(1) ofregulation(EU)n°537/2014.

JUSTIFICATIONOFASSESSMENTS–KEYAUDITMATTERS—Due to the global crisis related to the Covid-19 pandemic, thefinancial statements of this period have been prepared andaudited under specific conditions. Indeed, this crisis and theexceptionalmeasurestakeninthecontextofthestateofsanitaryemergency have had numerous consequences for companies,particularlyontheiroperationsandtheirfinancing,andhaveledtogreater uncertainties on their future prospects. Thosemeasures,suchas travel restrictions and remoteworking, havealsohadanimpact on the companies’ internal organisation and theperformanceoftheaudits.It is inthiscomplexandevolvingcontextthat, inaccordancewiththe requirements of ArticlesL.823-9 and R.823-7 of theCommercialCode relating to the justificationofourassessments,weinformyouofthekeyauditmattersrelatingtorisksofmaterialmisstatementwhich,inourprofessionaljudgement,wereofmostsignificance in our audit of the consolidated financial statementsfor the financial year just ended, as well as how we addressedthoserisks.Thesematterswereaddressed in the contextofourauditof theconsolidated financial statements as awhole, and in formingouropinion thereon. Accordingly, we do not provide any opinion onspecificitemsoftheconsolidatedfinancialstatements.

MEASUREMENTOFTHEJOINTLYCONTROLLEDSHAREHOLDINGINTHEDOOYACOMPANY


At 31December 2020, the jointly controlled shareholding in the Dooyacompany was valued at €144.8million, as specified in note 13.1“Investmentsinassociatesandjointventures”totheconsolidatedfinancialstatements.Atthebalancesheetdate,yourGroupreassessedthevalueofthis jointly controlled shareholding, in accordance with the policiesdescribedinnote13.1totheconsolidatedfinancialstatements.

This impairment test involves comparing the recoverable amount of theshareholding in theDooya companywith its book value. The recoverableamountofa shareholding ismeasuredat thehigherof its fairvalueafterdeductionofdisposalcosts,anditsvalueinuse.Iftherecoverableamountexceedsthenetbookvalueoftheshareholdingatyear-end,noimpairmentisrecognised.However,ifthisamountislowerthanthenetbookvalue,animpairmentlossequaltothedifferenceisrecognised.

We considered the valuationof the jointly controlled shareholding in theDooyacompanytobeakeyauditmattersincedeterminingthevalueinuseis based on discounted forecast cash flows which require the use ofassumptions,estimatesorjudgementsbyManagement.

OurworkaspartoftheauditoftheGroup’sconsolidatedfinancial statements specifically consisted of, with thesupportofourvaluationspecialists:

reviewing the procedures for implementing the–impairmenttest inrelationtotheshareholdingintheDooyacompany;

assessing the consistency of the assumptions in–relation to the historic performances and operatingbudgetsapprovedbytheBoardofDirectorsofDooya,incorporating growth forecasts for subsequent years,in particular by taking into account the potentialimpactsoftheCovid-19pandemicintheseforecasts;

performingsensitivityanalysesonimpairmenttests;–

comparing the recoverable amount of the–shareholdingintheDooyacompanywiththenetbookvalue.

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CLASSIFICATIONOFLITIGATIONSASCONTINGENTLIABILITIES


The Group has contingent liabilities relating to legal, arbitration orregulatoryproceedingsarisinginthenormalcourseofitsbusiness.

As specified in notes “2020 highlights”, 1.3 “Judgements and estimates”and9.2“Contingentliabilities”totheconsolidatedfinancialstatements,theManagement of your Group exercises its judgement, and uses estimatesand assumptions when measuring these risks. Some of these risks areclassifiedascontingentliabilitiesand,inthisregard,noprovisionhasbeenmadeforthemintheGroup’sfinancialstatements.

We have considered that the classification of litigations as contingentliabilitiesisakeyauditmatterinviewoftheamountsinquestion,andthelevelofjudgementrequiredfromManagementtodeterminethem.

OurworkaspartoftheauditoftheGroup’sconsolidatedfinancialstatementsspecificallyconsistedof:

reviewingtheproceduresimplementedbyyourGroup–toidentifyandassesstheserisks;

familiarising ourselves with the risk assessment–performed by Management and the correspondingdocumentation, and reviewing the writtenconsultations provided by external advisers, whereapplicable;

assessing the written confirmations obtained from–yourGroup’sexternaladvisers;

assessing themain risks identified,and reviewing the–assumptions used by Management to classify theserisksascontingentliabilities;

assessing the appropriateness of the information–presentedinnotes“2020highlights”,1.3“Judgementsandestimates” and9.2 “Contingent liabilities” to theconsolidatedfinancialstatements.

SPECIFICVERIFICATIONS—InaccordancewiththeprofessionalstandardsapplicableinFrance,wehavealsoperformedthespecificverificationsrequiredby lawandregulationsonthe informationrelatingtotheGroupgiven intheManagementBoard’smanagementreport.We have no observation tomake with regard to the fairness ofsuch information and its consistency with the consolidatedfinancialstatements.Wecertifythattheconsolidatednon-financialstatementprovidedfor byArticleL.225-102-1 of the Commercial Code is included inthe information relating to the Group given in themanagementreport,itbeingspecifiedthatinaccordancewiththeprovisionsofArticleL.823-10 of said Code, we have verified neither the fairpresentation nor the consistency with the consolidated financialstatementsof the information contained in this statementwhichhastobesubjecttoareportbyanIndependentThirdParty.

OTHERVERIFICATIONORINFORMATIONPROVIDEDFORBYLEGALANDREGULATORYREQUIREMENTS—FORMATOFPRESENTATIONOFTHECONSOLIDATEDFINANCIALSTATEMENTSINTENDEDTOBEINCLUDEDINTHEANNUALFINANCIALREPORT

In accordance with paragraph III of Article 222-3 of the AMFgeneral regulations, the company’sManagement informed us onits decision to postpone the presentation of the consolidatedfinancial statements in compliance with the European singleelectronicformatasdefinedintheEuropeandelegatedregulationn°2019/815of17December2018to financialyearsbeginningonorafter1January2021.Therefore,thisreportdoesnot includeaconclusiononthecompliancewiththisformatofthepresentationoftheconsolidatedfinancialstatementsintendedtobeincludedinthe Annual Financial Report mentioned in paragraph I of ArticleL.451-1-2oftheMonetaryandFinancialCode.

APPOINTMENTOFTHESTATUTORYAUDITORS

We were appointed as Statutory Auditors of Somfy SA by yourGeneralMeetingsof24May2016forKPMGSAand12May2010forERNST&YOUNGetAutres.At 31December 2020, KPMGSA was in its fifth year ofuninterrupted engagement and ERNST& YOUNG et Autres in itseleventhyear.Previously, ERNST & YOUNG Audit had been Statutory Auditorfrom1993.

RESPONSIBILITIESOFMANAGEMENTANDINDIVIDUALSINCHARGEOFCORPORATEGOVERNANCEINRELATIONTOTHECONSOLIDATEDFINANCIALSTATEMENTS—Management is responsible for the preparation and fairpresentation of the consolidated financial statements inaccordance with International Financial Reporting Standards asadoptedby theEuropeanUnion, and for such internal control asManagementdeterminesisnecessarytoenablethepreparationofconsolidated financial statements that are free from materialmisstatement,whetherduetofraudorerror.Inpreparingtheconsolidatedfinancialstatements,Managementisresponsible for assessing the company’s ability to continue as agoing concern, disclosing, as applicable,matters related to goingconcernandusingthegoingconcernbasisofaccountingunless itisexpectedtoliquidatethecompanyortoceaseitsoperations.The Audit Committee is responsible for monitoring the financialreporting process and the effectiveness of internal control andrisks management systems and, where applicable, its internalaudit,regardingtheaccountingandfinancialreportingprocedures.TheconsolidatedfinancialstatementshavebeenpreparedbytheManagementBoard.

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STATUTORYAUDITORS’RESPONSIBILITIESFORTHEAUDITOFTHECONSOLIDATEDFINANCIALSTATEMENTS—AUDITOBJECTIVESANDAPPROACH

Our role is to issue a report on the consolidated financialstatements.Ourobjectiveistoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsasawholearefreefrommaterialmisstatement.Reasonableassurance isahigh levelof assurance, but is not a guarantee that an audit conducted inaccordance with professional standards will always detect amaterial misstatement when it exists. Misstatements can arisefromfraudorerrorandareconsideredmaterial if, individuallyorin theaggregate, theycould reasonablybeexpected to influencethe economic decisions that users take on the basis of theseconsolidatedfinancialstatements.As specified in ArticleL.823-10-1 of the Commercial Code, ourstatutoryauditdoesnot includeassuranceon theviabilityof thecompanyorthequalityofmanagementofthecompany.As part of an audit conducted in accordance with professionalstandards applicable in France, the Statutory Auditor exercisesprofessional judgement throughout the audit. Furthermore, theStatutoryAuditor:

identifiesandassessestherisksofmaterialmisstatementofthe–consolidated financial statements, whether due to fraud orerror, designs and performs audit procedures responsive tothose risks, and obtains audit evidence considered to besufficientandappropriatetoprovideabasisforhisopinion.Therisk of not detecting a material misstatement resulting fromfraud ishigher than forone resulting fromerror,as fraudmayinvolve collusion, forgery, intentional omissions,misrepresentations,ortheoverrideofinternalcontrol;obtains an understanding of internal control relevant to the–auditinordertodesignauditproceduresthatareappropriateinthe circumstances, but not for the purpose of expressing anopinionontheeffectivenessoftheinternalcontrol;evaluates the appropriateness of accounting policies used and–the reasonableness of accounting estimates and relateddisclosuresmadebyManagement in theconsolidated financialstatements;

events or conditions that may cast significant doubt on thecompany’s ability to continue as a going concern. Thisassessment is basedon the audit evidenceobtainedup to thedate of his audit report. However, future events or conditionsmay cause the company to cease to continue as a goingconcern. If the Statutory Auditor concludes that a materialuncertainty exists, there is a requirement to drawattention inthe audit report to the related disclosures in the consolidatedfinancial statementsor, if suchdisclosuresarenotprovidedorinadequate,toissueaqualifiedoradverseopinion;

assessestheappropriatenessofManagement’suseofthegoing–concern basis of accounting and, based on the audit evidenceobtained, whether a material uncertainty exists related to

evaluatestheoverallpresentationoftheconsolidatedfinancial–statements and assesses whether these statements representthe underlying transactions and events in a manner thatachievesfairpresentation;obtains sufficient appropriate audit evidence regarding the–financialinformationoftheentitiesorbusinessactivitieswithintheGroup to express an opinion on the consolidated financialstatements. The Statutory Auditor is responsible for thedirection, supervision and performance of the audit of theconsolidatedfinancialstatementsandfortheopinionexpressedontheseconsolidatedfinancialstatements.

REPORTTOTHEAUDITCOMMITTEE

We submit a report to the Audit Committee which includes inparticular a description of the scope of the audit and the auditprogramme implemented,aswellas the resultsofouraudit.Wealso report, if any, significant deficiencies in internal controlregarding the procedures relating to the preparation andprocessing of accounting and financial information that we haveidentified.Our report to theAuditCommittee includes the risksofmaterialmisstatement that, in our professional judgement, were ofmostsignificanceintheauditoftheconsolidatedfinancialstatementsofthecurrentperiodandwhicharethereforethekeyauditmatters,thatwearerequiredtodescribeinthisreport.We also provide the Audit Committee with the declarationprovidedforinArticle6ofregulation(EU)n°537/2014,confirmingour independence within the meaning of the rules applicable inFrance such as they are set in particular by ArticlesL.822-10 toL.822-14 of the Commercial Code and in the Code of Ethics forStatutoryAuditors.Whereappropriate,wediscusswiththeAuditCommittee the risks thatmay reasonably be thought to bear onourindependence,andtherelatedsafeguards.





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REPORT BY ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE CONSOLIDATED NON-FINANCIAL STATEMENT

This is a free English translation of the Statutory Auditor’s report issued in French and is provided solely for the convenience ofEnglish-speaking readers.This report shouldbe read inconjunctionwith,andconstrued inaccordancewith,French lawandprofessionalstandardsapplicableinFrance.

TotheGeneralMeeting,

InourcapacityasStatutoryAuditorofyourcompany(hereinafterthe “entity”) appointed as Independent Third Party (ITP), andaccredited by the French Accreditation Committee (ComitéFrançais d’Accréditation or COFRAC) under number3-1049(1), weherebyreporttoyouontheconsolidatednon-financialstatementfor the year ended 31December 2020 (hereinafter the“Statement”), included in the Group’s management reportpursuant to the requirements of ArticlesL.225-102-1, R.225-105and R.225-105-1 of the French Commercial Code (Code deCommerce).

RESPONSIBILITYOFTHEENTITY—TheManagementBoard is responsible forpreparinga Statementinaccordancewiththelegalandregulatoryprovisions,includingapresentationofthebusinessmodel,adescriptionoftheprincipalnon-financial risks, a presentation of the policies implementedconsideringthoserisksandtheoutcomesofsaidpolicies,includingkeyperformanceindicators.TheStatementhasbeenpreparedinaccordancewiththeentity’sprocedures (hereinafter the “Guidelines”), the main elements ofwhicharepresentedintheStatementandavailableuponrequestattheentity’sheadoffice.

INDEPENDENCEANDQUALITYCONTROL—Our independence is defined by the requirements ofArticleL.822-11-3oftheFrenchCommercialCodeandtheFrenchCodeofEthics(CodedeDéontologie)ofourprofession.Inaddition,we have implemented a system of quality control includingdocumented policies and procedures regarding compliance withapplicable legal and regulatory requirements, the ethicalrequirementsandFrenchprofessionalguidance.

RESPONSIBILITYOFTHESTATUTORYAUDITORAPPOINTEDASITP—Conversely, it is not our responsibility to issue an opinion oncomplianceby theentitywith theother applicable statutory andregulatoryprovisions,notably inrelationtocombatingcorruptionandtaxevasion,norregardingtheconformityoftheproductsandserviceswithapplicableregulations.Onthebasisofourwork,ourresponsibility istoprovideareportexpressingalimitedassuranceconclusionon:

the compliance of the Statement with the requirements of–ArticleR.225-105oftheFrenchCommercialCode;the fairness of the information provided in accordance with–ArticleR.225-105I, 3° andII of the French Commercial Code,i.e., the outcomes of the policies, including key performanceindicators, and the measures implemented considering theprincipalrisks(hereinafterthe“Information”).

However, it is not our responsibility to comment on the entity’scompliance with other applicable legal and regulatoryrequirements, in particular anti-corruption and tax avoidancelegislation, nor on the compliance of products and services withtheapplicableregulations.

NATUREANDSCOPEOFTHEWORK—Theworkdescribedbelowwasperformedinaccordancewiththeprovisions of ArticlesA.225-1 et seq. of the French CommercialCode, as well as with the professional guidance of the FrenchInstitute of Statutory Auditors (Compagnie Nationale desCommissaires aux Comptes or CNCC) applicable to suchengagementsandwithISAE3000(2):

we obtained an understanding of all the consolidated entities’–activities,andthedescriptionoftheprincipalrisksassociated;weassessedthesuitabilityofthecriteriaoftheGuidelineswith–respect to their relevance, completeness, reliability, neutralityand understandability,with due consideration of industry bestpractices,whereappropriate;weverifiedthattheStatementincludeseachcategoryofsocial–andenvironmentalinformationsetoutinArticleL.225-102-1IIIaswellas informationregardingcompliancewithhumanrightsand anti-corruption and tax avoidance legislation set out inArticleL.22-10-36,paragraph2;we verified that the Statement provides the information–required under ArticleR.225-105II of the French CommercialCode, where relevant with respect to the principal risks, andincludes, where applicable, an explanation for the absence ofthe information required under ArticleL.225-102-1III,paragraph2oftheFrenchCommercialCode;weverifiedthattheStatementpresentsthebusinessmodeland–a description of principal risks associated with all theconsolidated entities’ activities, including where relevant andproportionate, the risks associated with their businessrelationships,theirproductsorservices,aswellastheirpolicies,measuresandtheoutcomesthereof,includingkeyperformanceindicatorsassociatedtotheprincipalrisks;wereferredtodocumentarysourcesandconducted interviews–to:

assesstheprocessusedtoidentifyandconfirmtheprincipal●risks as well as the consistency of the outcomes, includingthe key performance indicators used, with respect to theprincipalrisksandthepoliciespresented,corroborate the qualitative information (measures and●outcomes) that we considered to be the most importantpresented inAppendix. Concerning certain risks(3), ourworkwas carried out on the consolidating entity, for the otherrisks, our work was carried out on the consolidating entityandonaselectionofentities(4);

AccreditationCofracInspection,number3-1049,scopeavailableatwww.cofrac.fr(1)ISAE3000:internationalstandardonassuranceengagementsotherthanauditsorreviewsofhistoricalfinancialinformation.(2)Environmentalimpactofproducts;ImpactoftheenvironmentonSomfyactivities;Localimpactofthesitesandimagewithlocalstakeholders;Businessethicsand(3)fairpractices;Privacyandpersonaldata;ResponsiblepurchasingandSupplyChaintransparency;Regulatorysafetyandcomplianceofproducts;Productinnovationservingourcustomersandsociety.SomfyActivitésSA,BFTSpA.(4)

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we verified that the Statement covers the scope of–consolidation, i.e. all the consolidated entities in accordancewith ArticleL.233-16 of the French Commercial Code, withinthelimitationssetoutintheStatement;we obtained an understanding of internal control and risk–management procedures the entity has put in place andassessedthedatacollectionprocesstoensurethecompletenessandfairnessoftheInformation;for the key performance indicators and other quantitative–outcomes that we considered to be the most importantpresentedinAppendix,weimplemented:

analytical procedures to verify the proper consolidation of●the data collected and the consistency of any changes inthosedata,testsofdetails,usingsamplingtechniques,inordertoverify●theproperapplicationofthedefinitionsandproceduresandreconcilethedatawiththesupportingdocuments.Thisworkwascarriedoutona selectionofcontributingentities(1) andcovers between 31% and 100% of the consolidated dataselectedforthesetests;

weassessedtheoverallconsistencyoftheStatementbasedon–ourknowledgeofalltheconsolidatedentities.

Webelieve that thework carried out, based on our professionaljudgment,issufficienttoprovideabasisforourlimitedassuranceconclusion;ahigher levelofassurancewouldhaverequiredustocarryoutmoreextensiveprocedures.

MEANSANDRESOURCES—Our work was carried out by a team of six people betweenJuly2020 andApril2021 and took a total of approximately threeweeks.We were assisted in our work by our specialists in sustainabledevelopment and corporate social responsibility. We conductedaboutteninterviewswiththepeopleresponsibleforpreparingtheStatement.

CONCLUSION—Based on the procedures performed, nothing has come to ourattention that causes us to believe that the consolidatednon-financial statement is not presented in accordance with theapplicable regulatory requirements and that the Information,taken as awhole, is not presented fairly in accordancewith theGuidelines,inallmaterialrespects.

Paris-LaDéfense,27April2021KPMGSA

FannyHoulliotPartner,SustainabilityServices


SomfyActivitésSA,BFTSpA.(1)

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APPENDIX—Qualitativeinformation(actionsandresults)consideredmostimportant

PeopleMechanismformonitoringprofessionsdevelopments

Programmestopromoteemployeehealthandwell-being

PlanetCarbonassessmentresultsforscopes1,2and3

Assessmentoffinancialrisksrelatedtoclimatechangeandrelatedinsurancetoprotectagainstthefinancialconsequences

Prosperity

GroupCodeofEthics

Supplierriskanalysistool

InformationSystemSecuritypolicy

Introductionofaproductcompliancecommittee

Overallassessmentofcustomersatisfaction

SomfyFoundationsponsorshipactivities

Keyperformanceindicatorsandotherquantitativeresultsconsideredmostimportant

People

Breakdownoftotalworkforcebyage

%ofemployeeswhowerepromotedorrelocated

%ofemployeeswhoreceivedtraining

Somfyscopesurveyengagementrate

%ofwomenintotalworkforce

%ofwomeninmanagement

Frequencyrateofwork-relatedaccidentsresultinginanabsence

Work-relatedaccidentseverityrate

Planet

Energyconsumptionoftheindustrialsitesperm2

CO2emissionsrelatedtoenergyconsumptionofindustrialsites

Averageannualpowerconsumptionpermotor

ProportionofproductssoldundertheSomfybrandthatbeartheActforGreenlabel

Volumeofnon-hazardousandhazardouswaste

Wasterecyclingrate

Prosperity

%ofpeoplewhohavecompletedtheanti-corruptione-learningcourse

%ofpurchasesmadelocally

%ofpeoplewhocompletedGDPRtraining

NetPromoterScore

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STATUTORY AUDITORS’ REPORT ON THE AUTHORISATION TO ALLOCATE SHARE PURCHASE OPTIONS (GENERAL MEETING OF 2 JUNE 2021 – RESOLUTION N°12)


As Statutory Auditors to your company and in compliance with the assignment set forth in ArticlesL.225-177 and R.225-144 of theCommercial Code,wehereby reporton theauthorisation for theallocationof sharepurchaseoptions for thebenefit of employees, orcertainemployeesor certain categoriesof staff, and/or corporateofficers asdefinedby law,of your companyor related companiesoraffiliatedeconomicinterestgroupsrelatedtoitasdefinedbyArticleL.225-180oftheCommercialCode,atransactionwhichissubmittedforyourapproval.Thetotalnumberofoptionsthusgrantedmaynotentitlebeneficiaries toa totalnumberofsharesrepresentingmorethan1.5%of thesharecapitalofyourcompanyoutstandingonthedateofthisMeeting,itbeingspecifiedthatthislimitwillcounttowardsthetotalnumberofsharesthatmaybegrantedfreeofchargebytheManagementBoardortheBoardofDirectors,asapplicable,undertheauthorisationgranted to theManagement Board by the 12thresolution to theGeneralMeeting of 22May 2019, sitting in extraordinary session, andunderanyothersimilarsubsequentauthorisationgrantedbytheGeneralMeeting.Onthebasisofitsreport,yourManagementBoardoryourBoardofDirectors,asapplicable,proposesthatitbeauthorised,foraperiodof38months,toallocatesharepurchaseoptions.ItistheresponsibilityoftheManagementBoardortheBoardofDirectors,asapplicable,toprepareareportonthereasonsforallocatingthesharepurchaseoptionsaswellasthetermsandconditionsproposedtosetthepurchaseprice.Itisourroletogiveouropiniononthetermsandconditionsproposedtosetthepurchasepriceoftheshares.Wehaveperformedtheduediligencewedeemednecessarywith regard to theprofessional standardsof theCompagnieNationaledesCommissairesauxComptesinrelationtothisassignment.TheseconsistedinverifyingthatthetermsandconditionsproposedtosetthepurchasepriceofthesharesaredisclosedinthereportoftheManagementBoardandcomplywithlegalandregulatoryprovisions.Wehavenoobservationstomakeinrespectofthetermsandconditionsproposedtosetthepurchasepriceoftheshares.





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DRAFT RESOLUTIONS TO THE COMBINED GENERAL MEETING OF 2 JUNE 2021

ORDINARYSESSION—FIRSTRESOLUTION–Approvaloftheparentcompanyfinancialstatementsforthefinancialyearended31December2020

The General Meeting, having considered the reports of theManagement Board, the Supervisory Board and the StatutoryAuditors on the financial statements for the year ended31December 2020, approves the parent company financialstatements, as submitted, which show a net profit of€100,960,384.65.

SECONDRESOLUTION –Approval of the consolidated financialstatementsforthefinancialyearended31December2020

The General Meeting, having considered the reports of theManagement Board, the Supervisory Board and the StatutoryAuditorsforthefinancialyearended31December2020,approvestheconsolidatedfinancialstatements,assubmitted,whichshowanetprofit(Groupshare)of€213,008,000.00.

THIRD RESOLUTION – Allocation of net profit for the financialyearandsettingofdividend

The General Meeting approves the following allocation of netprofitforthefinancialyearended31December2020proposedbytheManagementBoard:

Source

Netprofitforthefinancialyear– €100,960,384.65

Retainedearnings– €3,273,611.25

Allocation

Dividends– €68,450,000.00

Optionalreserve– €35,783,995.90

TheGeneralMeetingnotes that the totalgrossdividend is setat€1.85pershare.WhenitispaidtoindividualswhoaretaxresidentsinFrance,thedividendissubjecttoasinglefixed-levydeductionatsourceonthegross dividend at the flat rate of 12.8% (Article200 A of theGeneral Tax Code), or at the express, irrevocable andcomprehensive wishes of the taxpayer, to income tax calculatedaccording to a sliding scale after notably an allowance of 40%(Articles200A,13,and158oftheGeneralTaxCode).Thedividendisalsosubjecttosocialsecuritycontributionsattherateof17.2%.Theex-dividenddateissetat8June2021.Thedividendwillbepaidon10June2021.It is specified that if the company holds a number of treasuryshares at the ex-dividend date, the amounts corresponding tounpaiddividends inrespectof theseshareswillbetransferredtoretainedearnings.

Pursuant to the provisions of Article243 (ii)of the General TaxCode, the GeneralMeeting notes that it was reminded that thefollowingdividendswerepaidduringthelastthreefinancialyears:

Financialyear

Revenueseligiblefortaxrebate Revenuenot

eligiblefortaxrebate

Dividends Otherdistributedearnings

2017€44,645,450.20*

being€1.30**pershare

– –

2018€48,094,109.00*being€1.40per

share– –

2019€42,976,388.75*being€1.25***

pershare– –

Does not include unpaid dividends attributable to treasury shares*andtransferredtoretainedearnings.Theshareparvaluewasdividedbyfiveon24May2017.Sincethat**date,sharecapitalcomprises37,000,000shareswithaparvalueof€0.20each.The2019dividendamountwasreviseddownwardsat theGeneral***Meetingof24June2020.

FOURTHRESOLUTION–SpecialreportoftheStatutoryAuditorson regulated commitments – Noting the absence of newagreements

TheGeneralMeeting,havingconsideredthespecialreportoftheStatutoryAuditorsmentioningtheabsenceofnewagreementsofthe type referred to in ArticlesL.225-86 and subsequent of theCommercialCode,simplyacknowledgesthisfact.

FIFTHRESOLUTION–ApprovaloftheinformationreferredtoinparagraphIofArticleL.22-10-9oftheCommercialCode

TheGeneralMeeting,actingpursuanttoArticleL.22-10-34IoftheCommercialCode,approvestheinformationincludedinparagraphI ofArticle L. 22-10-9of theCommercial Code andmentioned inthe paragraph “Information referred to in paragraph I of ArticleL.22-10-9 of the Commercial Code” of the report on corporategovernanceincludedinthe2020AnnualFinancialReport.

SIXTH RESOLUTION – Approval of the fixed, variable andexceptional items comprising total remuneration and benefitsofanykindpaidorallocatedduringthefinancialyearjustendedto Jean Guillaume DESPATURE, Chairman of theManagementBoard

TheGeneralMeeting, acting pursuant to Article L. 22-10-34 II oftheCommercialCode,approvesthefixed,variableandexceptionalitemscomprisingtotalremunerationandbenefitsofanykindpaidorallocatedduringthefinancialyearjustendedtoJeanGuillaumeDESPATURE,ChairmanoftheManagementBoard,aspresentedinthe reporton corporategovernance included in the2020AnnualFinancialReport,paragraph“Fixed,variableandexceptionalitemscomprising total remuneration and benefits of any kind paid orallocatedduring the financial year justended to theChairmanoftheManagementBoard,membersoftheManagementBoardandtheChairmanoftheSupervisoryBoard”.

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SEVENTH RESOLUTION – Approval of the fixed, variable andexceptional items comprising total remuneration and benefitsofanykindpaidorallocatedduringthefinancialyearjustendedtoPierreRIBEIRO,memberoftheManagementBoardandChiefFinancialOfficer

TheGeneralMeeting, acting pursuant to Article L. 22-10-34 II oftheCommercialCode,approvesthefixed,variableandexceptionalitemscomprisingtotalremunerationandbenefitsofanykindpaidorallocatedduringthefinancialyearjustendedtoPierreRIBEIRO,memberoftheManagementBoardandChiefFinancialOfficer,aspresented in the reporton corporategovernance included in the2020 Annual Financial Report, paragraph “Fixed, variable andexceptional items comprising total remuneration and benefits ofanykindpaidorallocatedduring the financialyear justended tothe Chairman of the Management Board, members of theManagementBoardandtheChairmanoftheSupervisoryBoard”.

EIGHTH RESOLUTION – Approval of the fixed, variable andexceptional items comprising total remuneration and benefitsofanykindpaidorallocatedduringthefinancialyearjustendedtoMichelROLLIER,ChairmanoftheSupervisoryBoard

TheGeneralMeeting, acting pursuant to Article L. 22-10-34 II oftheCommercialCode,approvesthefixed,variableandexceptionalitemscomprisingtotalremunerationandbenefitsofanykindpaidorallocatedduringthefinancialyearjustendedtoMichelROLLIER,ChairmanoftheSupervisoryBoard,aspresentedinthereportoncorporate governance included in the 2020 Annual FinancialReport, paragraph “Fixed, variable and exceptional itemscomprising total remuneration and benefits of any kind paid orallocatedduring the financial year justended to theChairmanoftheManagementBoard,membersoftheManagementBoardandtheChairmanoftheSupervisoryBoard”.

NINTHRESOLUTION–Approvalof the remunerationpolicy fortheChairmanoftheManagementBoardandthemember(s)oftheManagementBoard

TheGeneralMeeting,actingpursuanttoArticleL.22-10-26oftheCommercial Code, approves the remuneration policy for theChairmanandmembersoftheManagementBoardaspresentedinthe reporton corporategovernance included in the2020AnnualFinancial Report (paragraph “Corporate officers’ remunerationpolicy”).

TENTH RESOLUTION – Authorisation to be granted to theManagementBoardortheBoardofDirectors,asapplicable,forthe buyback by the company of its own shares pursuant toArticleL.22-10-62oftheCommercialCode

ofany increaseor reduction in share capital thatmay takeplaceduringthetimeframeoftheprogramme.

The General Meeting, having considered the report of theManagement Board, authorises the latter or the Board ofDirectors, as applicable, for a period of 18 months and inaccordance with Articles L. 225-10-62 and subsequent andL.225-210 and subsequentof theCommercial Code, tobuybackcompany shares, on one or several occasions as it deemsappropriate, up to a maximum of 10% of the number of sharescomprisingthesharecapital,restatedifnecessarytotakeaccount

This authorisation supersedes the authorisation granted to theManagementBoardbythe15thresolutiontotheGeneralMeetingof24June2020,sittinginordinarysession.Acquisitionsmaybecarriedoutforthefollowingobjectives:

tostimulatethesecondarymarketorensuretheliquidityofthe–Somfyshare,bywayofaninvestmentservicesproviderwithinaliquidity contract that complies with practices recognised byregulations, it being specified that within this framework thenumber of shares considered for the calculation of the limitspecifiedabovecorrespondstothenumberofsharespurchasedlessthenumberofsharesresold;toretainthesharespurchasedandsubsequentlyexchangethem–or use them as payment within the framework of potentialacquisitions;toensurethecoverageofstockoptionplansand/orfreeshare–allocation plans (or similar) granted to employees and/orcorporate officers of the Group, as well as all other sharesallocatedunderacompanyorgroupsavingsscheme(orsimilar),inrelationtoemployeeprofit-sharingand/oranyotherformofallocationtoemployeesand/orcorporateofficersoftheGroup;to covermarketable securities giving right to the allocation of–companyshares,inaccordancewithapplicableregulations;to proceed with the possible cancellation of shares acquired,–subjecttotheauthorisationgrantedbytheGeneralMeetingofshareholders of 24 June 2020 in its 16th resolution, sitting inextraordinarysession.

Such sharepurchasesmaybeeffectedbyallmeans, includingbymeansof acquiringblocksof shares andat any times consideredappropriatebytheManagementBoardortheBoardofDirectors,asapplicable.The company reserves the right to use options or derivativeinstruments,inaccordancewithapplicableregulations.Themaximumpurchasepriceissetat€200pershare.Incaseofasharecapital transaction, inparticularasharesplit, reversesharesplit or allocation of free shares to shareholders, theabove-mentionedpricewillberestatedinthesameproportions(amultipliercoefficientequaltothenumberofsharescomprisingtheshare capital before the transaction divided by the number ofsharesfollowingthetransaction).The maximum value of the transaction is therefore set at€216,775,000.TheGeneralMeetingconfersallpowerstotheManagementBoardor the Board of Directors, as applicable, to proceed with thesetransactions, set their terms and conditions, conclude allagreementsandfulfilalloftherequiredformalities.

EXTRAORDINARYSESSION—ELEVENTH RESOLUTION – Change to the company’sadministrationandmanagementformbyadoptingtheBoardofDirectorsform

The General Meeting, having considered the report of theManagement Board, has decided to change, with effect fromtoday’sdate,thecompany’sadministrationandmanagementformby adopting the formwith of a Board of Directors, governed byArticlesL.225-17toL.225-56andL.22-10-3toL.22-10-17oftheCommercialCode.

07 LEGAL DOCUMENTS


Asaresult,theGeneralMeetingnotestheautomaticterminationofthetermsofofficeofthemembersoftheManagementBoardandSupervisoryBoard(includingthatofthememberrepresentingemployees).TheGeneralMeeting notes the continuation of the terms of theincumbent principal Statutory Auditors for the duration of theirtermsoriginallyset,namely:

the firmErnst&YoungetAutresuntil theendof theOrdinary–GeneralMeeting tobeheld in2022andcalled toapprove thefinancialstatements forthefinancialyearending31December2021;thefirmKPMGSAuntiltheendoftheOrdinaryGeneralMeeting–to be held in 2022 and called to approve the financialstatementsforthefinancialyearendingDecember2021.

TWELFTH RESOLUTION – Authorisation to be granted to theManagementBoardortheBoardofDirectors,asapplicable,togrant stock options to salaried employees (and/or certaincorporateofficers)

The General Meeting, having considered the report of theManagement Board and the special report of the StatutoryAuditors:

authorises theManagementBoardor theBoardofDirectors,1)as applicable, under the provisions of Articles L. 225-177 toL.225-185, L. 22-10-56 and L. 22-10-57 of the CommercialCode,togrant,ononeormoreoccasionsandforthebenefitofthe beneficiaries indicated below, options giving the right topurchase existing shares of the company originating frombuybackscarriedoutundertheconditionssetoutbylaw;setsthetermofthisauthorisationat38monthsstartingfrom2)thedayofthisGeneralMeeting;decidesthatthebeneficiariesoftheseoptionsmayonlybe:3)ontheonehand,employees,orcertainemployeesorcertain●categories of staff, either employed by Somfy or, ifapplicable, companies or related economic interest groupsaccording to the terms and conditions set out by ArticleL.225-180oftheCommercialCode,on the other hand, corporate officers that fall under the●conditionssetforthbyArticleL.225-185oftheCommercialCode;

the total number of options that may be granted by the4)Management Board or the Board of Directors, as applicable,under this authorisation may not entitle beneficiaries topurchasemorethan1.5%of thesharecapitaloutstandingonthedateof thisMeeting, itbeing specified that this limitwillcounttowardsthetotalnumberofsharesthatmaybegrantedfree of charge by the Management Board or the Board ofDirectors, as applicable, under the authorisation granted bythe 12th resolution to the General Meeting of 22May 2019,sitting in extraordinary session, and under any other similarsubsequentauthorisationgrantedbytheGeneralMeeting.Thenominalamountofthecapital increasenecessarytopreservethe rights of beneficiaries of options in the event of a sharecapital transaction to the Company’s share capital – inaccordance with the law and, where applicable, thecontractual stipulations providing for other terms andconditionsrelatedtotheirprotection–wouldbeaddedtothisamountwhereapplicable;decides that the purchase price of the shares by the5)beneficiarieswillbesetonthedateoptionsaregrantedbytheManagement Board or the Board of Directors, as applicable,pursuanttoregulations,andcannotbelowerthantheaverageclosing price of the last 20 trading days of the share onEuronextParisprecedingthedateoptionsaregranted;

decides that no options may be granted during the closed6)periodsspecifiedbyregulations;delegatesfullpowertotheManagementBoardortheBoardof7)Directors,asapplicable,tosetothertermsandconditionsforthegrantingandexercisingofoptions,andespeciallyto:set the terms and conditions under which options will be●granted and determining the list or categories ofbeneficiaries as provided for above; set, if need be,conditions of seniority and performance that beneficiariesmustmeet;decidethetermsandconditionsunderwhichtheprice and number of sharesmust be adjusted, especially incasesprovidedforinArticlesR.225-137toR.225-142oftheCommercialCode,settheperiodorperiodsinwhichoptionscanbeexercised,it●beingspecifiedthatthetermoftheseoptionscannotexceedsixyearsfromthedatetheyaregranted,if necessary, provide the right to temporarily suspend the●exercise of options for a maximum of three months iffinancialtransactionsinvolvingtheexerciseofrightsattachedtosharesarecarriedout;

takesnotethatthisauthorisation,whereapplicable,willcause8)any unused portion of any prior authorisation to lapse fromtoday’sdate.

THIRTEENTHRESOLUTION–Powerstocompleteformalities

TheGeneralMeetinggrantsallpowerstothebearerofcopiesorextracts of the present minutes to complete all the filing andpublicationformalitiesrequiredbylaw.

RESOLUTIONSTOBESUBMITTEDFORVOTINGINTHEEVENTOFAPPROVALOFTHE11THRESOLUTIONOFTHISGENERALMEETING—EXTRAORDINARYSESSION—FOURTEENTH RESOLUTION – Approval of the newwording ofthecompany’sbylaws

The General Meeting, having considered the report of theManagementBoard,hasdecided to remove from thebylaws thereferenceaccording towhich“TheOrdinaryGeneralMeetinghassole authority to decide on or authorise the issue of ordinarybonds”, so that theBoardofDirectorshas thecapacity todecideonorauthorisetheissueofordinarybonds,inaccordancewiththeprovisionsofArticleL.228-40oftheCommercialCode.The General Meeting, having considered the report of theManagementBoardandthewordingofthenewdraftbylaws,andas a result of the approval of the eleventh resolution relating tothe adoption of the form of a Board of Directors, is adopting,articlebyarticle,andthen in itsentirety,thenewwordingofthebylaws(incorporatingthechangesinherentintheadoptionofthecompany’s new administration andmanagement form aswell asthe specific amendments approved pursuant to this resolution),which will govern the company with effect from today’s date, acopyofwhichisincludedintheAppendix.The GeneralMeeting notes that the amendments to the bylawsmake no changes to the corporate contract likely to lead to thecreationofanewmoralentity.TheGeneralMeetinghasdecidedthattheoverhaulofthebylaws,whichhasjustbeenadopted,shalltakeimmediateeffect.

07 LEGAL DOCUMENTS


FIFTEENTHRESOLUTION–TransfertotheBoardofDirectorsofthe authorisations granted to the Management Board by theGeneralMeeting

The General Meeting, as a result of the change in theadministrationandmanagementformofthecompanycoveredtheeleventh resolution, finds that the authorisations previouslygranted by the General Meeting to the Management Boardpursuant to the resolutions covered below, will now benefit theBoardofDirectors,fortheremainderoftheirterm:

the authorisation to cancel the shares bought back by the–company under the provisions of Article L. 225-209 of theCommercial Code (recodified in Article L. 22-10-62 of theCommercialCodewitheffectfrom1January2021),grantedbythe CombinedGeneralMeeting of 24 June 2020 as part of itssixteenthordinaryresolution;the authorisation to allocate free of charge existing shares for–the benefit of salaried members of staff of the company orcompanies related to it either directly or indirectly within themeaningofArticleL.225-197-2oftheCommercialCodeand/orcorporate officers who fulfil the criteria set by ArticleL.225-197-1oftheCommercialCode,grantedbytheCombinedGeneral Meeting of 22 May 2019 as part of its twelfthextraordinaryresolution.

ORDINARYSESSION—SIXTEENTH RESOLUTION – Appointment of Jean GuillaumeDESPATUREasDirector

The General Meeting decides to appoint Jean GuillaumeDESPATUREasDirectorforaperiodoffouryears,toexpireattheendoftheGeneralMeetingcalledin2025toapprovethefinancialstatementsfortheyearthenended.

SEVENTEENTHRESOLUTION–AppointmentofFlorenceNOBLOTasDirector

The General Meeting decides to appoint Florence NOBLOT asDirector for a period of four years, to expire at the end of theGeneral Meeting called in 2025 to approve the financialstatementsfortheyearthenended.

EIGHTEENTHRESOLUTION–AppointmentofMichelROLLIERasDirector

The General Meeting decides to appoint Michel ROLLIER asDirector for a period of one year pursuant to Article 14 of thebylaws,toexpireattheendoftheGeneralMeetingcalledin2022toapprovethefinancialstatementsfortheyearthenended.

NINETEENTH RESOLUTION – Appointment of SophieDESORMIÈREasDirector

The GeneralMeeting decides to appoint Sophie DESORMIÈRE asDirector for a period of four years, to expire at the end of theGeneral Meeting called in 2025 to approve the financialstatementsfortheyearthenended.

TWENTIETHRESOLUTION–AppointmentofAnthony STAHLasDirector

The General Meeting decides to appoint Anthony STAHL asDirector for a period of two years pursuant to Article 14 of thebylaws,toexpireattheendoftheGeneralMeetingcalledin2023toapprovethefinancialstatementsfortheyearthenended.

TWENTY-FIRST RESOLUTION – Appointment of Paule CELLARDasDirector

TheGeneralMeetingdecidestoappointPauleCELLARDasDirectorfor a period of four years, to expire at the end of the GeneralMeetingcalledin2025toapprovethefinancialstatementsfortheyearthenended.

TWENTY-SECOND RESOLUTION – Appointment of BertrandPARMENTIERasDirector

TheGeneralMeetingdecidestoappointBertrandPARMENTIERasDirector foraperiodof threeyearspursuant toArticle14of thebylaws,toexpireattheendoftheGeneralMeetingcalledin2024toapprovethefinancialstatementsfortheyearthenended.

TWENTY-THIRD RESOLUTION – Appointment of MarieBAVAREL-DESPATUREasDirector

The General Meeting decides to appoint MarieBAVAREL-DESPATURE as Director for a period of three yearspursuant toArticle 14of thebylaws, to expire at the endof theGeneral Meeting called in 2024 to approve the financialstatementsfortheyearthenended.

TWENTY-FOURTH RESOLUTION – Fixed annual sum to beallocatedtomembersoftheBoardofDirectors

TheGeneralMeetingdecidestosettheannualfixedamounttobeallocatedtotheBoardofDirectorsto€700,000.Thisdecisionapplies tothecurrent financialyearandwill remaininforceuntilfurthernotice.

TWENTY-FIFTH RESOLUTION – Approval of the remunerationpolicyfortheChairmanoftheBoardofDirectors

TheGeneralMeeting,actingpursuant toArticleL.22-10-8of theCommercial Code, approves the remuneration policy for theChairmanoftheBoardofDirectorsaspresented inthereportoncorporate governance included in the 2020 Annual FinancialReport(paragraph“Corporateofficers’remunerationpolicy”).

TWENTY-SIXTH RESOLUTION – Approval of the remunerationpolicyfortheChiefExecutiveOfficer

TheGeneralMeeting,actingpursuant toArticleL.22-10-8of theCommercialCode,approvestheremunerationpolicyfortheChiefExecutive Officer as presented in the report on corporategovernance included in the 2020 Annual Financial Report(paragraph“Corporateofficers’remunerationpolicy”).

07 LEGAL DOCUMENTS


TWENTY-SEVENTHRESOLUTION–ApprovaloftheremunerationpolicyfortheDeputyChiefExecutiveOfficer

TheGeneralMeeting,actingpursuant toArticleL.22-10-8of theCommercial Code, approves the remuneration policy for theDeputy Chief Executive Officer as presented in the report oncorporate governance included in the 2020 Annual FinancialReport(paragraph“Corporateofficers’remunerationpolicy”).

TWENTY-EIGHTHRESOLUTION–Approvalof the remunerationpolicyfortheDirectors

TheGeneralMeeting,actingpursuant toArticleL.22-10-8of theCommercial Code, approves the remuneration policy for theDirectors as presented in the report on corporate governanceincluded in the 2020 Annual Financial Report (paragraph“Corporateofficers’remunerationpolicy”).

RESOLUTIONSTOBESUBMITTEDFORVOTINGINTHEEVENTOFREJECTIONOFTHE11THRESOLUTIONOFTHISGENERALMEETING—ORDINARYSESSION—TWENTY-NINTHRESOLUTION–RenewalofthetermofofficeofFlorenceNOBLOTasmemberoftheSupervisoryBoard

The General Meeting decides to renew the term of office ofFlorenceNOBLOTasmemberoftheSupervisoryBoardforaperiodoffouryears,toexpireattheendoftheGeneralMeetingcalledin2025toapprovethefinancialstatementsfortheyearthenended.

THIRTIETH RESOLUTION – Renewal of the term of office ofSophieDESORMIÈREasmemberoftheSupervisoryBoard

TheGeneralMeetingdecidestorenewthetermofofficeofSophieDESORMIÈREasmemberoftheSupervisoryBoardforaperiodoffour years, toexpireat theendof theGeneralMeeting called in2025toapprovethefinancialstatementsfortheyearthenended.

THIRTY-FIRST RESOLUTION – Renewal of the term of office ofPauleCELLARDasmemberoftheSupervisoryBoard

TheGeneralMeetingdecidestorenewthetermofofficeofPauleCELLARDasmemberoftheSupervisoryBoardforaperiodoffouryears,toexpireattheendoftheGeneralMeetingcalledin2025toapprovethefinancialstatementsfortheyearthenended.

THIRTY-SECOND RESOLUTION – Non-replacement andnon-renewal of the term of office of Victor DESPATURE asmemberoftheSupervisoryBoard

The General Meeting, having noted that the term of office ofVictorDESPATUREasmemberoftheSupervisoryBoardexpiredattheendofthisMeeting,decidednottoreappointorreplacehim.

THIRTY-THIRD RESOLUTION – Approval of the remunerationpolicyforthemembersoftheSupervisoryBoard

TheGeneralMeeting,actingpursuanttoArticleL.22-10-26oftheCommercial Code, approves the remuneration policy of themembersfortheSupervisoryBoardaspresentedinthereportoncorporate governance included in the 2020 Annual FinancialReport(paragraph“Corporateofficers’remunerationpolicy”).

STATEMENT FROM THE INDIVIDUAL RESPONSIBLE FOR THE ANNUAL FINANCIAL REPORT

I certify that, to my knowledge, the financial statements for the year just ended were established in accordance with professionalaccountingstandardsapplicableinFranceandgiveafairviewoftheassets,financialsituationandperformanceofthecompanyandofallcompaniesincludedintheconsolidationscope,andthattheaccompanyingmanagementreportgivesatrueviewofthebusinesssituation,performanceandfinancialsituationofthecompanyandofallcompaniesincludedintheconsolidation,aswellasadescriptionofmainrisksanduncertaintiestheyencountered.

Cluses,28April2021

PierreRibeiroMemberoftheManagementBoardandChiefFinancialOfficer

189

08


RECENT EVENT

PRESS RELEASE OF 20 APRIL 2021

PLANTOCHANGEGOVERNANCEMODEL—Somfyisannouncingitsplantomodifyitslimitedcompany’scurrent governance model to a Board of Directors withseparate Chairman of the Board of Directors and ChiefExecutiveOfficerfunctions.Overthepastthreeyears,Somfyhasundertakenaprofoundtransformation tobecome thepreferredpartner forwindowand door automation for homes, notably through its 2030Ambitionprojectandtheimplementationofanewfunctionalorganization. This new organization, combined with everyemployee’s dedication, has enabled the Group to meet thechallengesformedbythehealthcrisis.TheCovid-19crisishasnot only brought the home back to the forefront ofconsumers’ attention and accelerated the pace of marketchange,but it also is creatingnewunderlying trends for theGroup.Facedwith these challenges, theManagementBoardwishesto adapt the Group's governance model to strengthen theagilityof itsmodelandcreatebalancedgovernance thatwillbettercombinestrategicvisionandoperationalexcellence.Aproposalwillbemadeduring theGeneralAssemblymeetingto change the form of governance to that of a limitedcompany with a Board of Directors. After the GeneralAssemblymeeting, and pending its approval, the Board willconsider the separation of the Chairman of the Board ofDirectors and Chief Executive Officer functions, with thefollowingappointments:

Jean Guillaume Despature, Chairman of the Board of–Directors;PierreRibeiro,ChiefExecutiveOfficer;–ValérieDixmier,Deputy CEO in charge of People, Culture,–andOrganization.

Toexecute the company’sproject, the governingbodieswillbe supported by the Executive Committee, which will bejoinedbyanew,soon-to-be-appointedChiefFinancialOfficer.The role of the Executive Committeewill be to execute thestrategy, roll out the transformation, manage performance,anddefineandrollouttheculture.“Duringthehealthcrisis,Somfydemonstratedtheresilienceofitsmodelandtherelevanceofitsproject,2030Ambition.Thisnewgovernancemodelwillhelpusfacethemajorchangesinthe housing and construction market, by strengthening ourability to anticipatewhile giving ExecutiveManagement andthe Executive Committee themeans to focus on operationalexcellence to pursue our profitable growth objectives,”explains Jean Guillaume Despature, Chairman of theManagementBoard.“The Supervisory Board, which I have chaired for the pasteight years, has supported Somfy in its development and inconsolidatingitspositionastheworldleader.Iampleasedtocontribute to the implementation of this new governancemodel,whichwillprovidetheGroupwiththegoverningbodiesneeded to meet the new challenges of digitalization,sustainabledevelopment,andmarkettransformation,”statesMichelRollier,ChairmanoftheSupervisoryBoard.


NOTES

Photo creditsCover: ©Stéphane Rambaud - P. 4-5: ©Sémaphore and Co - P. 10: ©Matthieu Latry

This document is printed on 100 % recycled paper using vegetable-based inks by Monterrain Printers, holders of the green “Imprim’Vert” ecolabel.

INVENT A NEW WAY OF

LIVING, TOGETHER

ANNUAL FINANCIAL

REPORT 2020

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SOMFY SA50, AVENUE DU NOUVEAU-MONDE

BP 152 - 74307 CLUSES CEDEX – FRANCETEL.: +33 (0) 4 50 96 70 00www.somfy-group.com

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