2023 universal registration document

Information systems

The Group’s Global IT Department issues strategic orientations for its IT systems and information systems security (ISS) guidelines. The systems incorporate “ERP (Enterprise Resource Planning)”, a management software application used by the vast majority of commercial subsidiaries. The worldwide roll-out of this integrated software package reinforces the reliability and security of producing information, including accounting and financial information. In pursuit of the same objective, the deployment of an integrated production and management solution in the Group’s manufacturing entities is continuing.

The procedures and standards governing the activities

Each Functional Division defines, in its own specific field, the principles and standards applicable to the entities it manages. These principles and standards are summarised in the “Fundamentals of Internal Control”, a guide which is regularly updated under the responsibility of the Ethics, Risk and Compliance Department, so that employees can adopt them more easily. This document provides a reference framework for the Group. It covers operational activities in the form of an information sheet for each area of activity. Each information sheet refers to the detailed charters, codes and standards of the Group. The sheets are regularly updated, expanded and validated by the Functional Divisions.

A management segregation of duties standard is regularly updated and distributed to all entities. It defines the main rules for sales, purchasing, logistics, finance, human resources and information systems management. The application of these rules prevents the risks of fraud and reduces the probability that errors (whether intentional or not) may remain undetected.

Communication of information inside the Group

The “Fundamentals of Internal Control” are circulated to the Managing Directors, Finance Directors, and Internal Control Managers of all the consolidated subsidiaries, including manufacturing entities. The Fundamentals, codes, charters, standards, and information related to the organisation, variations and instructions from the Support Departments are made permanently available to the subsidiaries on the Group’s Intranet sites. A digital standard provides all Group employees with guides, charters and expert contacts organised by function and by subject.

The Functional Divisions also hold seminars and learning sessions for their networks of experts. News published on the Intranet gives employees news updates and meaningful messages on Internal Control.

Within the Group, two tools promote communication on the priorities of Internal Control:

1. the “Internal Control Awards”, which take place every two years and reward the best global initiatives; and
2. the Internal Control Department’s Intranet site, which disseminates Internal Control’s initiatives, tools and events all over the world.

3.2.2. Control and supervision activities: those involved and their roles

Risk management and Internal Control is the business of everyone, from governance bodies to all employees. This system is continually monitored to ensure it is relevant, meets the Group’s objectives and addresses its issues. The main players in the monitoring of Internal Control and risk management are:

• the General Management and its Management Committee (Executive Committee);
• the Board of Directors and especially the Audit Committee;
• the Ethics, Risk and Compliance Department, the Internal Control Department and the Internal Audit Department;
• the Functional Divisions; and
• the Operational Divisions and Geographic Zones.

The General Management and its Management Committee (Executive Committee)

The General Management defines the general principles of Internal Control and ensures their proper implementation. In order to fulfil their global Internal Control responsibilities, the

members of the Executive Committee rely on operational and functional managers, according to their areas of expertise. These managers must ensure these general principles are implemented and the procedures correctly applied to achieve the level of Internal Control required by General Management.

The Board of Directors and Audit Committee

The Board of Directors has always asserted the importance of Internal Control and its main areas of application ⁽¹⁾The activities of the Board of Directors are reported in subsection 2.3.2 and the duties entrusted to its Chairman in paragraph 2.1.2.3..

The Internal Rules of the Board of Directors define the Audit Committee’s duties:

• it monitors the action taken by Internal Control and reports this to the Board of Directors;
• it is responsible for monitoring issues relating to the preparation of accounting and financial information and for corporate sustainability reporting; and
• each year, it reviews the Internal Audit plan, its objectives and the general conclusions of Internal Audit assignments, as well as the initiatives and major projects that relate to Internal Control. The Committee uses this information to report its remarks to the Board of Directors.