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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

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