2007 - April

1.0
Management report
In addition, a specific civil liability policy has been taken out
on franchiser activities. The legal departments in the various
Group companies are responsible for constantly checking the
suitability of coverage in view of changes in their companies’
activities.
As far as intellectual property-related risks are concerned,
and further to the inventory of brands and internet domain
names drawn up in 2005, further work has been carried out
on registrations and filings by the APRIL GROUP Legal Affairs
and Risks Division both in France and at international level.
Most filings are centralized with service providers that have
been referenced by APRIL GROUP in order to ensure the most
effective protection possible. Administrative follow-up is
centralized by the Group Legal Affairs and Risks Division.
Disputes
The reduction in other provisions for contingencies and
losses reflects the relocation processes carried out for
several Group companies.
Provisions for disputes primarily correspond to disputes
linked to the operational activities of APRIL Group companies,
none of which represent a significant amount on their own.
Provisions for contingencies and losses
BREAKDOWN OF PROVISIONS
(In thousand euros)
Dec 31, 2006
Industrial and environmental risks
On account of the nature of its activity (insurance services),
the Group is not concerned by such risks.
Changes in
Scope
Increase Reduction Dec 31, 2007
Provisions for disputes 3,021 -5 696 -621 3,091
Provisions for pensions 3,996 1,138 518 -125 5,527
Other provisions for contingencies
and losses
8,430 255 2,252 -5,278 5,659
TOTAL PROVISIONS FOR CONTINGENCIES
AND LOSSES 15,447 1,388 3,466 -6,024 14,277
Provisions have been booked for any significant disputes
based on the best possible estimates in view of the elements
available at the close of accounts.
To the best of the issuer’s knowledge, there are no other legal
disputes that could have a significant impact on its financial
position, assets, business or results. The main actuarial
assumptions retained as Group standards for determining
provisions for retirement benefits are as follows:
Discount rate: 4%
Rate of increase in salaries: 2%
Rate of inflation: 2%
Insurance and risk coverage
A number of specific insurance programs have been put in
place for the needs of APRIL GROUP companies. The types of
policies concerned are as follows:
Civil liability for executives,
Broker professional liability,
Franchiser professional liability,
Financial guarantee,
Universal systems risks,
Universal site risk,
Supplementary health and personal protection.
The risk manager regularly carries out an analysis of the main
insurance policies taken out by Group companies in order to
ensure that the cover in place is sufficient and adapted to
their activities.
All of the abovementioned policies have been taken out with
companies outside of the Group, except for the personal
protection program, which has been taken out with Axeria
Prévoyance, which is part of the Group.
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