2008 Registration Document - Rexel

This procedure charges the entire organization withresponsibility for achieving Group objectives and applies toall subsidiaries consolidated in 2008.A monthly review of activities, which brings togetherthe Management Board and the management of thegeographic zones, allows for the understanding of financialand economic changes with respect to activities, theassessment of operational decision-making, analysis ofgaps between objectives and performance, the financialstructure control and the monitoring of implementation ofaction plans. In its review, the Management Board relieson monthly reporting, comments on observed changes andindicators of operational performance. At the subsidiary,Group and geographic zone levels, teams of financialcontrollers are responsible for monitoring the achievementof objectives and the analysis of accounting and financialinformation.Four times per year, forecasts are prepared and comparedwith budget objectives in order to implement the necessarycorrective action. In addition to summarized financialstatements (on a consolidated basis and per geographiczones), these forecasts include financial structure controlitems, in particular forecasts with respect to key ratios setforth in the financing agreements (“covenants”).The monthly reviews of activities and the forecasts arecommunicated to the members of the Supervisory Board.Each year, a three-year strategic plan is set up at theoperational levels (divisions, subsidiaries) and validatedby the geographic zone management. All these items areconsolidated and reviewed at the Group level and submittedfor approval to the Supervisory Board.2.4.2 Shared guidelines and preparationof financial statementsGroup financial statements are prepared based oninformation provided by the finance departments of thesubsidiaries. These departments are responsible forensuring that this information conforms to Group standards(accounting methods, account structure, reporting andconsolidation manuals) and observance of the detailedinstructions issued by the Group’s Finance Department.This data is transmitted in a set format using a singleconsolidation tool that is used in preparing monthlyreports and external financial information at each stage ofconsolidation: planning, budget, forecasting and monthlyreporting. This single system guarantees the consistencyof the different data used in internal steering and in externalcommunication.The Group’s Administrative and Financial division ensuresconsistency of the inflow of information from subsidiariesbefore aggregating the results and consolidation reports.Detailed and documented analyses are performed in orderto compare results in accordance with homogeneousparameters (modifications in scope, change, non-recurringoperations).As mentioned in paragraph 2.3 of this report, internalcontrols relating to accounting and financial information arepart of the general internal control system.Signed in ParisOn March 30, 2009Roberto QuartaChairman of the Supervisory BoardREXEL 2008 | PAGE 277