PRESENTATION OF THE BELIEVE & ACT STRATEGIC PLAN

PRESS
RELEASE

30 MARCH 2017

“INSPIRING A BETTER WAY OF LIVING ACCESSIBLE TO ALL”

The Chairman of the Management Board, Jean Guillaume Despature, today presents to the financial community and business press the strategic roadmap, titled Believe & ACT, which resulted from the review undertaken following his appointment at the head of Somfy in March 2016.

Its implementation relies on the mobilisation of all the Group's entities and teams and is based on four cornerstones, also known as drivers, namely Closer to our End-Users, Bolder on the Interior Market, Stronger on Operational Excellence and Better Together. It also forms part of the globalisation and internationalisation strategy pursued in recent years, focusing in particular on emerging countries. The implementation was also consolidated by the many strengths identified during discussions with various employees, customers and partners.

The review undertaken validated the Group's vision and confirmed the quality of its range of products and portfolio of brands, the high levels of expertise of its teams and the robustness of its manufacturing base and its distribution network. It also highlighted the significant potential of the residential and commercial buildings automation market, both in France and Europe, as well as in the rest of the world, as a result of growing expectations in terms of security and comfort, awareness of climate and energy-related issues, and the widespread adoption of the solutions generated due to increasing popularity of connected objects.

The aim of the blueprint adopted is to put the Group in a position to fully capitalise on this high growth environment and to position it, as the leader in its sector, as a major player in the digitalisation of living spaces and the industry standard for controlling opening and closing systems in the home within the different connectivity ecosystems. As such, this involves major transformation work at every level and presupposes the continuation of the investment effort undertaken in recent years (research and development, IT and production systems, brand, distribution channels).

The four drivers mentioned are the guiding principles of the strategic roadmap which has been defined.

/ The first driver, Closer to our End-Users, illustrated by the launch of the interactive platform My Somfy Lab and the roll-out of the CRM solution Salesforce.com, aims to bring the brand even closer to its customers and leverages new technologies to strengthen proximity to the public and improve the use of the data gathered, as well as to provide solutions designed for specific uses while interfacing with the building's other applications and improving user-friendliness and ergonomics. It is also based on the Group's ability to develop ever more innovative solutions, such as TaHoma 2.0, a platform that ensures the native interoperability of the different domestic applications; Smart & Smooth, the first fully connectable tubular motor; and Somfy One, a mini all-in-one security solution that manages all useful applications.

/ The second driver, Bolder on the Interior Market, demonstrates the Group's desire to remain the key player in its historical business and in this way to be actively involved in the widespread roll-out¹ and digitalisation currently taking place within its business sector. This should enable the Group to become a key player in developing the motorisation of interior products, as it did for rolling shutters, by simultaneously using its capacity to launch innovative concepts - such as the Ultra Quiet solutions, the first silent powerful motors - its ability to establish itself in new distribution channels - such as online sales - and its legitimacy in addressing both the high end residential and tertiary segments.

/ The third driver, Stronger on Operational Excellence, reflects the Group's desire to consolidate its business model and strengthen its competitive edge within a sector undergoing significant change. It requires the application of the highest standards and agile development methods in order to remain completely in sync with the market (time to market) and to deliver ever higher levels of quality and service.

/ The fourth driver, Better Together, illustrates the Group's desire to play its full role in society, to reaffirm the values that led to its success and to bring its teams together around a unifying corporate project. It combines the eco-design of its solutions with managerial practices that are based on trust and subsidiarity, encouraging decisions to be taken as near to the ground as possible. Its aim is to increase agility, to promote adapting to new challenges, encourage initiatives and facilitate interactions between employees from the different entities and brands.

The unveiling of the strategic roadmap was the opportunity for Jean Guillaume Despature to say, “We have the desire to continue transforming Somfy by capitalising on our entrepreneurial culture, which guarantees both our profitable growth and a long-term vision, and by preserving the Group's strengths, that is to say its ability to innovate, the reputations of its brands and its structure which is based on a strong global and local alliance. The Believe & ACT plan was designed with this in mind. It is intended to help us make a successful transition to the digitalisation of our sector and position ourselves as a key player in the connected home. I know that I can count on the commitment and expertise of all our teams to ensure we fulfil this ambition”.

“IN THE BEGINNING, SOMFY GROUP WAS A PIONEER IN THE MOTORISATION OF THE HOME.
IT WAS THEN A PIONEER IN AUTOMATION.
IT IS NOW A PIONEER IN DIGITALISATION.”

/ CORPORATE PROFILE

Somfy Group is the global leader in opening and closing automation for both residential and commercial buildings, and a key player in the connected home. Its markets are structured around three divisions, namely home and building (blinds, shutters, etc.), access (barriers, gates, etc.) and connected solutions.

It operates eight industrial sites, connected to more than 50 logistics centres, and employs 8,000 people in almost 60 countries. 2016 sales totalled €1,132 million with net profit of €143 million.

/ PRESENTATION

The presentation of the strategic roadmap is accessible on the Company website in the financial communication section (www.somfyfinance.com).

/ Contacts

Somfy
Pierre Ribeiro: +33 (0)4 50 40 48 49 / Emilie Mathelin: +33 (0)4 50 96 71 01

Shan
François-Xavier Dupont: +33 (0)1 44 50 58 74 / Candice Baudet-Depierre: +33 (0)1 44 50 51 71 /
Diane de Brisis: +33 (0)1 47 03 47 36

¹Transition from niche market to mass market.

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