DNFP 2020

2020 DECLARATION OF NON-FINANCIAL PERFORMANCE OF THE DESCOURS & CABAUD GROUP 21 Key performance indicator: An indicator has been established to identify areas of risk and individual action plans. The objective in 2020 was to ensure that a third of all Management posts had identified successors who would be ready to take over the roles concerned within a maximum period of 3 years. For 2020, we reached a percentage of 33%. For 2021 the objective will be raised to 38%. 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. In 2018 DESCOURS & CABAUD made 8 acquisitions, including 2 in North America, and in 2019 the Group made 21 acquisitions, including 3 in France and 3 in North America. In 2020 a total of 5 companies joined the Group, the focus being placed on integrating the numerous acquisitions made between 2018 and 2020. The Group had set itself the goal of increasing the share of its turnover earned from international markets to 40% by the end of 2020. This share, which had totalled 15% in 2014, finally reached 36% by the end of 2020. These external growth operations consolidate the Group’s strategy, which aims to reinforce its European leadership in industrial supplies and Personal Protective Equipment (PPE), and to strengthen its geographical footprint in North America. This development also enables it to gain access to new markets and to internationalise its identity more quickly. It also makes it possible to acquire the new resources, skills and expertise that it requires. However, it is essential to ensure the continuity of the market shares acquired during this process, particularly in terms of the key resources of the newly acquired companies. The companies acquired by DESCOURS & CABAUD and integrated into its structure are selected in terms of 3 decisive parameters. 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 and commitment. Next, theymust also contribute to achieving the profitability targets of a family-owned Group such as ours. Finally, they must generate added business value in our B2B markets, while anticipating its future trends and guaranteeing a medium- to long-term positioning. The risk factors and their consequences: The risks of failing to integrate and monitor acquired companiescanariseat all levels: commercial, purchasing, the supply chain, finance, tax, human resources, IT, or legal. The consequences of such risks can take multiple forms. In terms of trade practices, these may include a loss of customers, or the delisting of product references or changing of non-permanent sales conditions on the part of one or more suppliers. The risks may also involve personnel, however, particularly when the employees of a newly acquired company consider their professional future to be uncertain after the acquisition and decide to resign for this reason. % of management posts with a 3-year formal succession plan Preparation of succession planning Target set 33% 0% 5% 10% 15% 20% 25% 30% 40% 35% 45% 2019 2020 33% 24%