LIVING Innovation by and for the People
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LIVING Innovation by and for the people Our ambition: Our shared 2015 to improve adventure: Activity living to be successful Report environments entrepreneurs somfy.com Contents Activity Report 2015 4 16 ENCOURAGING TODAY, SOMFY IS BUILDING OUR TEAMS’ THE CONNECTED HOME OF ENTREPRENEURIAL SPIRIT TOMORROW Interview with Jean Guillaume Despature, Chairman of the Somfy Management Board 10 Everything you need to know about connectivity CONNECTED HOMES, for applications in the home. Today and tomorrow. PRODUCTS, DISTRIBUTION AND MORE: SOMFY ACCELERATED IN 2015 18 INNOVATION CONSOLIDATING SOMFY’S STRENGTHS AND EXPLORATION METHODS Activity highlights in 2015 12 OUR AMBITION: TO IMPROVE LIVING ENVIRONMENTS The main focuses of innovation in the three activities: exterior applications, interior applications, access/security FOR ALL FOR BETTER LIVING 22 2015 FINANCIAL RESULTS 1. Customer and user testimonials Contents SOMFY 26 34 ENGAGEMENT, BETTER LIVING TOGETHER, THE KEY TO OUR SUCCESS THE SOMFY FOUNDATION’S 2. CITIZEN ENGAGEMENT The Somfy Foundation and the Group’s charitable activity 2015 Highlights for Somfy and its employees 38 ECO-DESIGN AND “DAILY” EFFORTS WE MAKE FOR THE PLANET 28 OUR SHARED ADVENTURE: TO BE SUCCESSFUL ENTREPRENEURS The Group’s efforts to reduce its environmental footprint: the company restaurant at Cluses. What employees are saying 40 SKIING, A PASSION, 32 A FAMILY BETTER LIVING TOGETHER A NEW INTERNAL PACT: “BETTER LIVING TOGETHER” The Inspiring Group from the Better Living Together Project. Martin Fourcade 1 2015 Activity Report Somfy Inspiring a better way of living accessible to all SINCE IT WAS FOUNDED 48 YEARS AGO, SOMFY GROUP HAS FREQUENTLY PLAYED A PIONEERING ROLE IN AUTOMATIC CONTROLS FOR OPENINGS AND CLOSURES IN HOMES AND BUILDINGS. IN 2015, SOMFY DEFINED THIS AMBITION: INSPIRING A BETTER WAY OF LIVING, ACCESSIBLE TO ALL. 3 activities HOME CONNECTED ACCESS & BUILDING SOLUTIONS Somfy Group manufacturing capacity in 2015: 15,000,000 motors 2 3 SOMFY 5 types 8 commercial of applicati ons brands SHUTTER AND AWNING Rolling shutt ers, folding-arm awnings, solar screens, etc. INTERIOR SOLUTIONS Solar protecti on, curtains, projecti on screens, etc. ACCESS MANAGEMENT Gates, garage doors, barriers, bollards, etc. SECURITY Alarms, videophones, cameras 7,800 €1,061.1 Million EMPLOYEES IN 58 COUNTRIES UP 5.6% ON A LIKE-FOR-LIKE BASIS SALES HOME AUTOMATION 114 €165.6 Million SUBSIDIARIES CURRENT OPERATING INCOME Controlling, programming and monitoring all home systems 8 PRODUCTION SITES IN 5 COUNTRIES 2015 fi gures. 2 3 2015 Activity Report Interview with Jean Guillaume Despature CHAIRMAN OF THE SOMFY MANAGEMENT BOARD 4 5 SOMFY “I HAVE SET MYSELF THE VERY IMPORTANT TASK OF ENCOURAGING AN ENTREPRENEURIAL SPIRIT AMONG OUR EMPLOYEES.” INTERVIEW ON FOLLOWING PAGE 4 5 2015 Activity Report 2015 Somfy Conference IN MARCH 2016, YOU TOOK ON THE ROLE OF OPERATIONAL DIRECTOR OF SOMFY GROUP. HOW DO YOU SEE YOUR NEW ROLE? As a catalyst and a facilitator of our teams’ entre- preneurial approach – what I call the “Somfy spirit”. Forty-five years ago, Somfy was built on the energy and non-conformist attitude of a handful of pioneers who believed in motorization to revolutionize the market for rolling shutters and awnings. From the end of the 1990s, this same entrepreneurial spirit encouraged us to lead our sector towards automation. In the digital era, with smart objects set to become commonplace in the home, it is once again up to Somfy, as leader of its sector, to make connectivity standard for openings and closures in the home. This means transforming our products and our markets but also persuading our trade customers to share our with a positive trend in all regions where the vision. It is essential that we mobilize the “Somfy Group operates, as well as improved profitability. spirit” of our early days. Today, our teams still This took place in a macroeconomic context which, have their entrepreneurial drive. But – and this is let’s not forget, remains complicated. The unstable inevitable – delegation and the latitude everyone economic situation in Brazil led us to withdraw is given to engage outside their comfort zone and from the capital of Garen Automação and Giga, follow their intuition are more difficult attitudes without undermining our development strategy to bring into play in a Group that has grown and for our traditional activities in this country. become international. “Giving our work So I have set myself a very important task. WHAT IS THE INITIAL ASSESSMENT OF THE STRATEGIC INFLECTIONS INTRODUCED a focus – to OUTSIDE OBSERVERS SAW 2015 AS THE YEAR FIVE YEARS AGO TO ACCELERATE YOUR THAT SOMFY BROKE THROUGH THE ONE GROWTH IN NEW MARKETS? continue to lead the BILLION EURO BARRIER IN SALES. WAS THIS transformation in AN IMPORTANT MILESTONE? The solidity of the 2015 results proves that the Group is engaged in the process of transforma- our core markets Of course it’s a symbolic threshold, but I prefer to tion. On the most mature markets, the Home & look back on 2015 and see the good performance Building Activity has capitalized on innovation – is essential in of our results, because they reflect the effective, and the extension of its distribution channels to high-quality work of our teams and the relevance harness the potential for growth which remains the Connected of our vision to support long-term growth. With significant, including in Europe. Sales of our the economic environment much more uncertain Connected Home solutions are also starting to Homes market as in Europe since 2010, this vision has allowed us to generate a good proportion of sales. The Access undertake the necessary strategic inflections to Activity continues to lead the Group into the new it becomes more ensure lasting profitable growth for the Group. This markets of security and access management for has involved rebalancing our geographic portfolio commercial buildings, while helping to strength- structured.” and diversifying our business models, particularly en our positions in Europe and the Middle East. by developing the markets for Access – now the And in emerging markets, where Somfy is still at Group’s second biggest business – and Connected the beginning of its journey, we are expanding Homes. This strategy was pursued in 2015, and our network in the Group’s priority territories a we are staying on this course in 2016. All this has little more every year. In 2014, the establishment contributed to the excellent growth of our of a development center for curtain motor sys- business activity, which grew 8.1% in real terms, tems in China, at the heart of the world’s biggest 6 7 SOMFY market for this type of application, was a success. will also open up opportunities for targeted, In 2016, we are creating a Marketing department measured growth in home equipment sectors for the Asia-Americas region, allowing us to start that complement our own. At the beginning of working on the Somfy brand’s reputation in these 2016, Somfy acquired a smart lock manufacturer regions, which will be an important accelerator. in order to extend its offer. CREATION OF THE CONNECTED IN A BUILDING INDUSTRY UNDERGOING IN 2015, THE GROUP COMPLETED THE PROCESS SOLUTIONS ACTIVITY A MAJOR TRANSFORMATION DUE TO THE OF REFOCUSING ON ITS CORE BUSINESS. DIGITAL AND SMART OBJECT REVOLUTION, DOES THIS PLACE IT IN A STRONGER POSITION To accelerate its development in the HAS IT BECOME MORE DIFFICULT TO HAVE TO ACCELERATE IN THE FUTURE? Connected Homes market, Somfy created A LONG-TERM STRATEGIC VISION? a dedicated Activity in September 2015: After the separation of Somfy Activities and Somfy Connected Solutions. This Activity No, we have given our work a focus – to continue Participations at the end of 2014, which led to strengthens the Group’s expertise in to lead transformation in our core markets – the creation of Edify, we finalized the process application connectivity, and will support and this has become even more essential in the of refocusing the Group on its core business in growth for Somfy’s two other Activities – Connected Homes market as it becomes more 2015, and withdrew from the capital of CIAT and Home & Building and Access – and their structured. However, like all the other players Faac. This division has allowed Somfy to target its operating in this field, which is not mature but is investments even more on innovation which, in core products. evolving very quickly, Somfy must demonstrate the context of transformation in our industry, Its role: agility and rapidity. This is the aim of the Somfy is more a priority than ever. In 2015 we began anticipate new trends in connectivity Spirit and the human resources project, Better launching a significant wave of new-generation and communication protocols, and Living Together, which will simplify the way we solutions such as the Smart & Smooth connected develop tools and expertise in data operate and work together across the Group’s motor. This will have a major impact on the management; activities and brands. But our long-term vision growth of business and the creation of value in define, develop and establish Somfy’s remains the same. It lets us pursue profitable our traditional markets. But our investments in connected products (box and satellites); growth for the Group while continuing to create innovation will not be focused solely on our offer; develop and sell connected solutions value on our markets, particularly through con- they will extend throughout the Group in order to B2B manufacturer partners. nectivity. Thanks to its teams’ hard work over to speed up our process of transformation. This the past five years, Somfy has consolidated the is the reason for the current digitalization of our foundations of this vision, starting with a multi- IT systems and the new exploratory innovation brand, complementary portfolio that serves the methods we are starting to implement in 2016.