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3Risk managementLegal risksLinks with or dependence on other partiesTo the best of the Company’s knowledge, no contracts have beenentered into by Group companies other than those mentionedbelow, the expiry or breach of which could have a significantimpact on the Company’s financial position, operations or results.The market structure of the Group’s subsidiaries – both in termsof purchasing and sales – enables them to limit supplier and customerrisks. In addition, no Group company is overly dependenton any of its suppliers or customers.Arjowiggins does not use virgin pulp in its production; howeverit remains exposed to fluctuations in paper pulp, cotton, wastepaper and energy prices.As regards intellectual property, the Group registers trademarksin France and throughout the world in order to protect the imageand products of its companies. A number of these trademarks arewidely renowned. All of the trademarks necessary for the Group’soperations are owned directly by the subsidiary concerned or bythe Group.The Group’s companies – particularly Arjowiggins – hold severalpatents which they use directly or licence to third parties. Theyalso use patents under licence from third parties, some of whichhave been granted exclusively.Although these trademarks, patents and licences have a certainvalue, the expiry or loss of the related rights would not jeopardisethe financial position of either Arjowiggins or Antalis.Pension benefit obligations for staffin foreign subsidiaries (1)Certain of the Group’s employees in foreign subsidiaries – notablyin the UK and the US – benefit from pay-as-you-go anddefined benefit pension plans. In particular, the Group’s UK pensionplans have been completely reviewed in liaison with theirindependent trustees in order to bring them into line with localregulations.The largest pension fund within the Group is the Wiggins TeapePension Scheme (WTPS).The participating companies fund the pension scheme in line witha funding plan reviewed annually with the trustees. Their contributionis based on beneficiary risk and the return on plan assets.There are several methods for measuring the benefit obligationand since the agreements signed in March 2008, Arjowigginsand Sequana have guaranteed 113% of the WTPS buy-out deficitas calculated annually, on a unilateral basis by the pension fundtrustees and their actuaries. The buy-out deficit represents thetheoretical deficit in the event of the transfer of the obligations inrelation to the fund to an insurance company. Since 1 April 2011,the amount of the guarantee is capped at the lower of (i) 113% ofWTPS’s buy-out deficit as estimated at 31 December each yearor (ii) GBP 164 million.Following the transfer of the working members of WTPS tothe Antalis Pension Scheme (APS) in 2010, a similar guaranteemechanism is in operation for this fund. The amount ofthe guarantee for APS is also equal to the lower of 113% of thefund’s buy-out deficit as estimated at 31 December each year, orGBP 36 million.In excess of these amounts, the guarantees given to WTPS andto APS may only be enforced subject to approval of the Board ofDirectors of Sequana. The guarantees expire on 31 March 2023and on 8 January 2024, respectively, for WTPS and APS, andmay be renewed.Assets required for operations that are not ownedby Group companiesThe only plant leased by Arjowiggins is the Priplak plant built in2002. In addition, Antalis leases a large number of its warehouses.Anti-trust legislationIn view of stricter anti-trust laws, the Group has set up an antitrustcompliance programme aimed at sharing best practices inthis field. This programme comprises training and initiatives tofoster awareness among employees of developments in anti-trustlegislation, and procedures for identifying, flagging and stampingout any non-compliant practices.The policy forms one of the key planks of Arjowiggins’ andAntalis’ employee training programmes.(1) See chapter 4 – Notes 16 and 31.82 | Sequana | 2012 Document de référence (English version)