DNFP_2018_English

2018 DECLARATION OF NON-FINANCIAL PERFORMANCE OF THE DESCOURS & CABAUD GROUP 30 Monitoring external growth - Development of synergies The DESCOURS & CABAUD Group has expanded to a large extent through external growth. These mergers or alliances with other companies have enabled it to expand more quickly, by acquiring existing companies. External growth has developed in recent years, more particularly through establishments outside France. This external growth development method enables the Group to quickly strengthen its competitive position, access new markets and take on an international dimension more quickly. It also enables it to acquire the resources and skills it lacks. However it is essential to ensure the continuity of the key resources the company has acquired. Our consolidated companies must meet 3 decisive criteria. Firstly, they must share the entrepreneurial values that make up the Group's DNA and that guarantee our customers a very high level of service. Next, they must also contribute to achieving the profitability targets of a family-owned Group such as ours. Finally, they must contribute added commercial value to our B2B markets. The risk factors, their consequences and their means of control The risks of failing to integrate and monitor acquired companies can arise at all levels: commercial, purchasing, the supply chain, finance, tax, human resources, IT, legal. It is important to put in place a complete organisation that both guards us against each of these risks and defines the integration strategy for companies joining the Group. We have thus adopted a formal process of integration since the beginning of 2019. This process starts when the takeover contracts are signed, or even before that point, depending on their complexity and stakes, in order to guarantee the best possible management of risks. > The means of control: DESCOURS & CABAUD's approach to this integration process consists in facilitating the on-boarding and integration of new companies in the Group in the best possible conditions, in both business terms and in social and human terms. The overall integration process is constructed in four stages: • internal anticipation of integration • kick-off meeting and induction visit • integration workshops • progress reporting and follow-up The first stage (internal anticipation of integration) aims to align the level of knowledge of the project concerned, more particularly with regard to the strategic objective, the resulting creation of value and the integration action plan to implement. Among other things, this stage serves to identify and name the contacts tasked with coordinating integration. Induction of and communication with the new company, both generic (standard presentation of the Group, provision of information concerning all the employees) and specific (the strategic objectives of the merger with this company, especially a particular strategic intention, etc.) are also defined at this stage.