Annual report 2001 - GL events

3
3-5-3 Risk linked to the activity
Concerning the selection of investments and the
operating methods to build-up projects, Générale
Location’s internal policy is to control and master the risks
taken both towards the staff concerned and the public
who will come and visit the sites.
As a result, special attention is given to the preparation of
projects and the anticipation of possible problems.
Concerning certain activities (mostly grandstands and
structures) committees of control are systematically
solicited.
Générale Location‘s commitment is to respond to clients‘
needs by providing services which, together or taken
individually, correspond to norms established by each
professional activity and which must be used according to
given rules. It is up to the clients to make sure these rules
are respected during the event. Générale Location
guarantees its responsibility by subscribing to a policy of
Group’s public liability.
Concerning human resources, three characteristics
particular to Générale Location and its activity can be
brought forwards.
a) The multiplicity of the different activities exercised by
the Group, the markets, and the geographical sites from
where Générale Location operates as well as the strong
service policy the group offers to its clients, have led
Générale Location to maintain a method of organization
based on profit centers kept at a human size with an
emphasis on the individual professional evolution and the
proximity in the relation to its clients.
b) The activity of Générale Location characterizes itself by
the daily presence of an important portion of its staff on
the numerous sites where shows, events, and exhibitions
occur every day.
c) Autonomy and a sense of the responsibilities are two
values crucial in the management of human resources. It
is in fact thanks to both of them that Générale Location is
able today to expand its development.
This risk must be taken into account and placed within a
context where the seasonal aspect of the activity for one
is important and also where the more distant locations of
certain projects are more frequent.
Based on this, this particular risk is considered weak.
3-5-4 Markets risk
This risk is also judged weak.
The market of shows and events relies on the need to
convene in order to exchange and share (knowledge,
leisure, points of view,…). We consider that the new tools
of communication such as internet and mobile phones
reinforce the need for meeting rather than decreasing it.
As a result of some of social upheavals, conflicts, and
epidemics (mouth-and-foot disease), some events have
been prevented from happening.
Générale Location bases its activities and its assets in
countries considered by the group politically and
economically stable. The possibility to transfer the assets
in another country and the globalization of our clients
are two factors which reduce the risk in case of
encountered difficulties.
3-5-5 Legal and tax risk
During the regular process of its activities, the Group is
at time implicated in legal disputes and litigations.
Whereas the final outcome of these procedures cannot
be known in advance, the Group can estimate that the
obligations which could result from them should not
have a significant impact on its financial situation and
its consolidated results.
3-5-6 Foreign currency exchange risk
Each of the foreign subsidiary holds rental equipment
dedicated to a specific market (video walls, furniture,
grandstands,…). Générale Location can transfer this
equipment from one entity to another without taking
the risk of seeing its intrinsic value go down as a result
of exchange rate fluctuation.
Concerning the activity, except for major international
projects, where exchange rate risk may occur, there is no
regular flow of business with the foreign entities which
could possibly put Générale Location’s structure at risk.
The charges engaged by foreign subsidiaries are mostly
local charges paid in the same currency as the one used
for invoicing.
Consequently, one will consider the risk linked to
exchange rate moderate.