Change in Dooya's position and consolidation method within the Group

Somfy Group has held a 70% interest in Dooya, the Chinese leader in tubular motors since 2010 and has a call option on the remaining 30%, exercisable from 2035. At the time of the acquisition, governance was implemented with the minority shareholder of the company, the Sun family, and majority representation of Somfy on the Board of Directors of Dooya was agreed.

Since then, Dooya has grown at a sustained rate while remaining highly profitable. Its sales increased from €35 million in 2010 to €163 million in 2017 and its current operating margin fluctuated between 6 and 7% over the period, except last year, as a result of higher raw material prices and significant industrial and commercial investments.

Under the influence of Somfy Group, the Company has focused on the Chinese domestic market, where it now holds a leading position, but has consequently been less active than its main local competitors in international markets in which it has significant potential due to its positioning.

For this reason, the Group wished to clarify its brand policy and has decided to:

- Focus on Somfy and related brands (Simu, BFT, Asa, etc.), spearheads of the connected building market, in order to stimulate their innovation capacity and consolidate their positioning and performance in the various market segments,

- Manage Dooya as an independent entity, in partnership with the minority shareholder to enable it to develop separately, particularly at international level, and adapt as effectively as possible to its own competitive environment.

In this way, the Group intends to revitalise and consolidate the foundation of its main Somfy brand, while securing Dooya’s position and thus preserve the value of its investment in the Company.

New rules of governance have been adopted for this purpose without involving any changes to the capital structure but consolidating the minority shareholder’s role with joint control over the company.

In accordance with IFRS standards, Dooya will exit the Group’s full consolidation scope and will henceforth be equity accounted.

The 2018 and 2017 financial statements will be restated accordingly to ensure comparability between periods.