Download the 2009 annual report in PDF format - ANF
Download the 2009 annual report in PDF format - ANF
Download the 2009 annual report in PDF format - ANF
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106<br />
INFORMATION ABOUT <strong>ANF</strong><br />
Reports and <strong>in</strong><strong>format</strong>ion for <strong>the</strong> Shareholders’ Meet<strong>in</strong>g<br />
• is presented, <strong>in</strong> each six-month period, by <strong>the</strong> Executive Board,<br />
with an analysis of <strong>the</strong> risks to which <strong>the</strong> Company is exposed.<br />
Its members met four times <strong>in</strong> <strong>2009</strong>, with an attendance rate of<br />
100%. The ma<strong>in</strong> subjects addressed were as follows:<br />
• meet<strong>in</strong>g of March 18, <strong>2009</strong>: focus on 2008 property valuations,<br />
cash fl ow position and bank<strong>in</strong>g covenants, 2008 fi nancial<br />
statements, review of off-balance sheet commitments, <strong>in</strong>ternal<br />
audit programme, June <strong>2009</strong> closure process, draft <strong>report</strong> from<br />
<strong>the</strong> Chairman of <strong>the</strong> Supervisory Board on <strong>in</strong>ternal control, o<strong>the</strong>r<br />
bus<strong>in</strong>ess;<br />
• meet<strong>in</strong>g of June 22, <strong>2009</strong>: results for <strong>the</strong> 1st quarter of <strong>2009</strong>,<br />
focus on <strong>in</strong>ternal control, focus on implementation of IT tools;<br />
• meet<strong>in</strong>g of August 24, <strong>2009</strong>: review of property valuations as of<br />
June 30, <strong>2009</strong>, half-yearly results for <strong>2009</strong>, cash fl ow position<br />
and bank<strong>in</strong>g covenants, preventive measures for companies <strong>in</strong><br />
diffi culty, focus on IT project developments, o<strong>the</strong>r bus<strong>in</strong>ess;<br />
• meet<strong>in</strong>g of December 1, <strong>2009</strong>: fi nancial statements as of<br />
September 30, <strong>2009</strong>: <strong>in</strong>come forecasts as of December 31,<br />
<strong>2009</strong>, focus on cash fl ow and bank<strong>in</strong>g covenants, IT project<br />
progress, 2010 budget, client risk.<br />
Compensation and Appo<strong>in</strong>tments Committee<br />
This Committee comprises three members of <strong>the</strong> Supervisory<br />
Board: Messrs. Patrick Sayer (Chairman), Sébastien Baz<strong>in</strong> (1) and<br />
Philippe Monnier (1) .<br />
(1) Independent member.<br />
The Compensation and Appo<strong>in</strong>tments Committee has <strong>the</strong> follow<strong>in</strong>g<br />
duties and responsibilities:<br />
• to submit proposals to <strong>the</strong> Supervisory Board as to <strong>the</strong><br />
compensation of its Chairman, Vice-Chairman and <strong>the</strong> members<br />
of <strong>the</strong> Executive Board, <strong>the</strong> amount of attendance fees to be<br />
proposed to <strong>the</strong> Shareholders’ Meet<strong>in</strong>g, and <strong>the</strong> allocation of<br />
Company stock option plans and bonus shares to members of<br />
<strong>the</strong> Executive Board;<br />
• to submit recommendations for appo<strong>in</strong>t<strong>in</strong>g, remov<strong>in</strong>g and<br />
renew<strong>in</strong>g <strong>the</strong> terms of members of <strong>the</strong> Supervisory Board and<br />
Executive Board. The Committee is <strong>in</strong>formed of <strong>the</strong> recruitment<br />
and compensation of <strong>the</strong> key executive managers of <strong>the</strong><br />
Company.<br />
The Compensation and Appo<strong>in</strong>tments Committee met twice <strong>in</strong><br />
<strong>2009</strong>, on March 20 and November 30, with a 100% attendance<br />
rate. Dur<strong>in</strong>g <strong>the</strong>se meet<strong>in</strong>gs, <strong>the</strong> Compensation and Appo<strong>in</strong>tments<br />
Committee ruled on compensation for members of <strong>the</strong> Executive<br />
Board and <strong>the</strong> allocation of stock options to members of <strong>the</strong><br />
Executive Board and Company employees.<br />
Properties Committee<br />
The Properties Committee comprises four members of <strong>the</strong><br />
Supervisory Board: Messrs. Patrick Sayer (Chairman), Sébastien<br />
Baz<strong>in</strong> (1) . Jean-Luc Bret and Philippe Monnier (2) .<br />
The Properties Committee reviews and issues an op<strong>in</strong>ion on any<br />
and all contemplated transactions, corporate acts or proposals to<br />
<strong>the</strong> Shareholders’ Meet<strong>in</strong>g that are submitted to it by <strong>the</strong> Chairman<br />
of <strong>the</strong> Supervisory Board and require prior authorisation from <strong>the</strong><br />
Supervisory Board.<br />
(1) Independent member.<br />
(2) Independent member.<br />
<strong>ANF</strong> • <strong>2009</strong> ANNUAL REPORT<br />
�<br />
Contents<br />
The Properties Committee met once <strong>in</strong> <strong>2009</strong>, on December 17, with<br />
a 100% attendance rate. At this meet<strong>in</strong>g, <strong>the</strong> Properties Committee<br />
reviewed and approved <strong>the</strong> acquisition opportunities <strong>in</strong> which <strong>the</strong><br />
Company is <strong>in</strong>terested.<br />
Internal control and risk management procedures<br />
implemented by <strong>the</strong> Company<br />
The <strong>in</strong>ternal control procedures applied at <strong>ANF</strong> have two ma<strong>in</strong><br />
objectives:<br />
• to ensure compliance of all operations and behaviours with<br />
<strong>the</strong> guidel<strong>in</strong>es defi ned by <strong>the</strong> Supervisory Board and Executive<br />
Board, with applicable laws and regulations and with Company<br />
rules;<br />
• <strong>the</strong> fairness and accuracy of account<strong>in</strong>g, fi nancial and<br />
management <strong>in</strong><strong>format</strong>ion received by corporate bodies,<br />
<strong>the</strong> shareholders and <strong>the</strong> general public, with regard to <strong>the</strong><br />
Company’s bus<strong>in</strong>ess activities and its current situation.<br />
Internal control procedures are also <strong>in</strong>tended to reduce and, where<br />
possible, prevent and manage <strong>the</strong> risks faced by <strong>the</strong> Company <strong>in</strong><br />
<strong>the</strong> course of its bus<strong>in</strong>ess, and <strong>the</strong> risk of error or fraud, particularly<br />
<strong>in</strong> <strong>the</strong> areas of fi nance and account<strong>in</strong>g.<br />
In <strong>2009</strong>, <strong>the</strong> Company created a quantitative and qualitative map<br />
of <strong>the</strong> different risks to which it is exposed. This analysis consisted<br />
of identify<strong>in</strong>g specifi c situations, which were rated <strong>in</strong> terms of<br />
probability of occurrence and level of signifi cance. These rat<strong>in</strong>gs<br />
were used to assess all <strong>the</strong> situations identifi ed, on a scale from<br />
“moderate” to “severe”.<br />
A dist<strong>in</strong>ction must be made between <strong>in</strong>ternal control procedures<br />
applied to asset acquisitions and disposals and debt, on <strong>the</strong> one<br />
hand, and those applied to Company operations, on <strong>the</strong> o<strong>the</strong>r.<br />
CONTROL PROCEDURES APPLIED TO ACQUISITIONS, DISPOSALS<br />
AND INVESTMENTS OF EXISTING ASSETS, AS WELL AS TO DEBT<br />
At Supervisory Board level<br />
Accord<strong>in</strong>g to law, property disposals are, by nature, subject to prior<br />
authorisation from <strong>the</strong> Supervisory Board, as are total or partial<br />
disposals of equity hold<strong>in</strong>gs, and grant<strong>in</strong>g or arrang<strong>in</strong>g guarantees,<br />
bonds, or any type of security.<br />
In addition, <strong>the</strong> Articles of Association require <strong>the</strong> Supervisory<br />
Board’s prior authorisation for <strong>the</strong> follow<strong>in</strong>g transactions:<br />
• tak<strong>in</strong>g or <strong>in</strong>creas<strong>in</strong>g any equity stakes <strong>in</strong> any organisation or<br />
company, as well as <strong>the</strong> disposal of such hold<strong>in</strong>gs, entail<strong>in</strong>g<br />
Company <strong>in</strong>vestment <strong>in</strong> excess of €20 million;<br />
• any loan agreement, where <strong>the</strong> total amount, <strong>in</strong> one or more<br />
<strong>in</strong>stalments, exceeds €20 million.<br />
The follow<strong>in</strong>g criteria are taken <strong>in</strong>to account when calculat<strong>in</strong>g <strong>the</strong><br />
€20 million ceil<strong>in</strong>g:<br />
• <strong>the</strong> Company’s actual <strong>in</strong>vestment such as it is appears <strong>in</strong> <strong>the</strong><br />
fi nancial statements, whe<strong>the</strong>r <strong>in</strong> <strong>the</strong> form of capital or similar<br />
<strong>in</strong>struments, or loans to shareholders or similar <strong>in</strong>struments;<br />
OTHER GENERAL INFORMATION PRO FORMA FINANCIAL INFORMATION ANNUAL FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS INFORMATION ABOUT <strong>ANF</strong> DESCRIPTION OF THE BUSINESS