DNFP 2020

2020 DECLARATION OF NON-FINANCIAL PERFORMANCE OF THE DESCOURS & CABAUD GROUP 22 It is also important to remember that a large number of risks can also be identified prior to the acquisition, particularly during the audit period. Such risks must be addressed and monitored immediately after the purchasing of the company, and may include, for example, questions such as ensuring the conformity of a building, notification of regulations, the obligatory displaying of information, the securing of data, etc. In order to protect itself as much as possible against the risks referred to, DESCOURS & CABAUD accords the highest importance to the full integration of the companies that join the Group, and has established a comprehensive system and the relevant resources for the global monitoring of their integration. Our staff apply their experience and expertise both to prevent each of the risks mentioned above and to help to define the appropriate initiatives and strategies that will enable the newly acquired companies to fully integrate into the Group. The Group established a formal process for the integration of such companies in 2018, which was modified during the course of 2020. This process starts when the takeover contracts are signed, or even before that point, depending on their complexity and the stakes involved, in order to guarantee the best possible management of risks. The means of control: DESCOURS & CABAUD's approach to this integration process consists of facilitating the on-boarding and integration of new companies in the Group in the best possible conditions, both commercially and also in terms of social and human relationships. Once the acquisition is signed, a corporate announce- ment is organised so as to notify our staff of the compa- nies that are joining the Group. The first actions are addressed to the managers re- sponsible for the acquisitions, asking them to prepare IT and internal audit questionnaires, together with an interview concerning the General Data Protection Reg- ulation (GDPR), and to provide the new employees con- cerned with access to a “Welcome Site”. A warning message is immediately sent to make them aware of the possibility of fraudulent messages to the company President, a threat that is particularly sensitive immediately after the acquisition. The Group’s Ethical Charter and Code of Conduct are immediately sent to the company’s executives, since the messages transmitted by this means are vital and facilitate an immediate identification of the Group’s DNA. A welcome visit is quickly organised with the manager of the sales network concerned and a financial manager. The aim of this visit is to present the DESCOURS & CABAUD GROUP, and also to reply to any questions the new employees may have and to reassure them with regard to any concerns that they may naturally have with regard to situations of this kind. At this point, they will be reminded of the strategic objectives of the merger with their company, particularly if there is a specific strategic purpose. According to the size of the companies acquired and their levels of turnover, there are two possible methods of integration. One is referred to as the “delegated” method and the other is the “direct” method. The delegated method, which concerns the smaller companies and also those acquired in North America irrespective of their size, involves a welcome visit organised and conducted by the Director of the brand concerned. The integration process is monitored once every six months with regard to eight basic aspects (sales, purchasing, supply chain, finance, IT, audit, legal, etc.). This stage also serves to identify and name the contacts tasked with coordinating integration. The monitoring exercise is followed by a value creation plan, co-written by the local Manager responsible for the acquisition and the relevant executive of the acquired company with a view to focusing on the synergies specific to the acquisition concerned. The direct method of integration concerns the larger acquired companies. A welcome visit is organised in a way that is identical to that for the preceding method, except that there is a detailed questionnaire in relation to the eight aspects referred to above. This is followed by an integration visit designed for the joint preparation of a common roadmap leading to the drafting of a value creation plan. Actions are monitored with the same participants once every six months.