FFP_REGISTRATION_DOCUMENT_2017

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ACTIVITY AND PROFIT FOR THE PERIOD Risk factors – Risk management and insurance

Insurance and risk coverage FFP is covered by several insurance policies with respect to the following risks: O property damage and business interruption; O public liability; O directors and officers liability; O fraud/malicious attacks on IT systems. INTERNAL CONTROL AND RISK MANAGEMENT PROCEDURES IMPLEMENTED BY THE COMPANY Internal control procedures This report was prepared with reference to: O the revised version of the Autorité des marchés financiers’ reference framework and its application guide dated January 2007; and O the report of the working group on Audit Committees published by the AMF on 22 July 2010. All the recommendations are applied, and the internal control framework has been adapted to the Company and its operating procedures to reflect the limited size of its staff. According to the reference framework: O internal control is a system that the company is responsible for defining and implementing to ensure: • compliance with laws and regulations, • implementation of the instructions and direction set by Executive Management, • proper functioning of the Company’s internal processes, especially those relating to the protection of its assets, • reliability of financial information; and generally speaking, contributes to control over its activities, the efficiency of its operations and efficient use of its resources. One of the objectives of internal control is to prevent and control risks resulting from business risks and risks of error or fraud, particularly in accounting and financial matters; O the internal control system must have: • an organisation structure providing a clear definition of responsibilities, suitable resources and competencies and supported by appropriate information systems, procedures or operating methods, tools and practices; • internal flows of relevant and reliable information that enable everyone to exercise their responsibilities; • a risk management system identifying and analysing the main risks identified with regard to the company’s objectives and ensuring that procedures are in place to manage these risks;

RISKS RELATING TO OTHER ACTIVITIES

Identification of risks Weather risks are inherent in the operations of Château Guiraud (1) , which makes Sauternes wine designated as “premier cru classé” according to the 1855 classification, and influence production volumes. Risk management Available wine inventories are sufficient to cover customer demand if production should be insufficient. Other financial risks Other financial risks, including equity, exchange-rate, interest- rate and liquidity risks, are presented in Notes 28.1-28.5 to the 2017 consolidated financial statements. FFP is not currently exposed to liquidity risk. It would only be exposed to that risk in the event of a breach of covenants identified in Note 28.2 to the 2017 consolidated financial statements, which could occur in the situations described above. Identification of risks FFP does not have any direct industrial or commercial operations other than its investing activity. Its activities include being an industrial and commercial holding company. It is therefore exposed to risks that arise in any equity investment activity, but its business does not involve any particular risks of an industrial or human nature. Risk management When examining investment projects, FFP pays particular attention to the investee’s business and the related risks, and if necessary uses external experts and advisors. In its preliminary research, depending on the investee’s business type, FFP may carry out specific environmental audits, to ensure that there are no major risks and to ensure that the investee takes active steps to protect the environment. That was particularly the case for its investments in SCA Château Guiraud and ONET. Identification of risks To the Company’s knowledge, no litigation concerning FFP is underway or pending. There are no other government, legal or arbitration proceedings – including pending or potential proceedings of which the Company is aware – that may have or have had in the past 12 months a material effect on the financial position or profitability of the company and/or its fully consolidated subsidiaries. The Company believes that it has little exposure to commercial risks, liability proceedings or proceedings to make good any deficiency in assets given the nature of its business and investments (purchases of minority stakes). INDUSTRIAL AND ENVIRONMENTAL RISKS LEGAL RISKS

(1) Sole asset of SCA Château Guiraud, wholly-owned by Financière Guiraud SAS.

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FFP

2017 REGISTRATION DOCUMENT