FFP_REGISTRATION_DOCUMENT_2017

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

The Chairman and Chief Executive Officer, and the Chief Operating Officer are authorised to sign payments of an unrestricted amount. The Chief Legal Officer and two designated members of the Finance division are authorised to sign solely for payments of up to €10,000. Above this amount, a signature by both the Chief Legal Officer and by one of the two designated members of the Finance division is required. Regular tightening-up of the internal control system A. CODE OF ETHICS The Company has prepared a stock market code of conduct that was approved by the Board of Directors on 19 November 2008. This code of conduct was updated in 2016 to accommodate the changes introduced by Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse. This document aims to make each of its employees aware of the applicable rules, including where inside information is held concerning the shares of a listed company. All the employees have adhered to the code. In addition, on 12 September 2013, the Company overhauled FFP’s Internal Rules, which incorporate a Stock Market Code of Ethics applicable to directors. B. LIST OF INSIDERS The Company updates on a regular basis the list of persons with access to inside information, which, if made public, would have a significant influence on the price of financial instruments. These persons, whether they be employees, directors or third parties in a business relationship with the Group, have been informed of the prohibition on using or disclosing this inside information to buy or sell such financial instruments. C. HANDBOOK OF PROCEDURES AND ACCOUNTING ORGANISATION The handbook of administrative and accounting procedures and risk map are updated on a regular basis to factor in the introduction of new procedures and the occurrence of new risks. D. IT CODE OF CONDUCT The Company provides a copy of an IT Code of conduct and advice on using computers to its existing staff and to all new employees. Its goal is to protect the organisation’s interests, while also upholding users’ rights. The rules are intended to help ensure that every user has an effective and secure workstation at their disposal at all times that can satisfy the availability, confidentiality and data integrity imperatives, the Company’s corporate image and all the applicable statutory and regulatory guidelines.

O identification of the points likely to have a material impact on the financial statements. The information is communicated to Executive Management and possibly to the Board of Directors. The main risks incurred are those arising from the valuation of shares and those arising from non-application of an accounting rule or material error. The main measures taken to mitigate these risks are as follows: O non-listed securities are valued by the Finance division and the Investments division, and details of the valuation are then presented to the Statutory Auditors; O the meeting with the Statutory Auditors ahead of the close represents a key factor affecting the quality of the process of preparing the financial statements because it allows a consensus to be reached and any challenging issues to be dealt with prior to the close; O the checks on the main stages by the Chief Financial Officer provide an additional level of control; O the rereading of the financial statements and reports by another person in the Finance division provides a consistency check, with special attention paid to changes with respect to the previous year; O the final audit by the Statutory Auditors followed by a review by the Financial and Audit Committee. B. PROCEDURE OF CATALOGUING AND MONITORING OFF-BALANCE SHEET COMMITMENTS All the Company’s contracts are subject to approval by the Company’s Legal division. A list of off-balance sheet commitments is drawn up. In accordance with the provisions of law, the grant of sureties, endorsements and guarantees must be approved in advance by the Board of Directors. At its meeting on 21 November 2017, the Board of Directors renewed the authorisation given to the Chairman and Chief Executive Officer, which may be delegated, including to the Chief Operating Officer, to provide on the Company’s behalf sureties, endorsements and guarantees in a maximum aggregate amount of €1,000,000, for a further period of 12 months from 1 January 2018 until 31 December 2018. This authorisation thus will be renewable at the end of 2018. C. PROCEDURE FOR CONTROLLING EXPENDITURE – BANKING POWERS General administration expenses of less than €10,000 May be incurred by the Chief Investment Officer or the Chief Financial Officer. Where they exceed this level, they may be incurred only with the approval of Executive Management or the Chief Legal Officer. Accordingly, general administration expenses are entered in the accounts and settled by the Finance division only after the expenditure has been approved by the authorised persons.

4

109

FFP

2017 REGISTRATION DOCUMENT