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Risks and control Internal control

Organization of the Group’s consolidation process 2.5.6 The consolidation is organized by consolidation levels with hierarchical relationships with the head of each Sector, and reporting directly to the Group Consolidation and Reporting Department.

DELEGATIONS BASE

HOLDING COMPANIES

Innovative Materials

Construction Products

Building Distribution

High-Performance Materials

Flat Glass

Processing information and 2.5.7 control of the accounts Each subsidiary submits its accounts in accordance with the timetable set by the Company. The account packages are checked and processed at Sector level, reviewed by the General Delegation concerned, then transmitted to the Consolidation Department, which performs an overall review of the Group’s accounts and records the necessary consolidation adjustments. These consolidated accounts are submitted to General Management every month. The consolidated financial statements are then examined by the external auditors in accordance with professional auditing standards. Consolidation tools 2.5.8 The consolidated financial statements are prepared using consolidation software equipped with a powerful, efficient and highly secure database that is aligned with the Group’s matrix management structure. The software is regularly updated to guarantee the financial information system’s sustainability. A tightly controlled access procedure has also been put in place to ensure that the overall system is secure, and a comprehensive access review is performed every quarter. This tool is capable of managing a database with several levels of consolidation and transparently centralizing data in the Group database.

It feeds data into a secure reporting system accessible on the Group’s intranet for Group general management and the management of the Sectors and General Delegations, contributing to internal control of information output.

A reporting process that 2.5.9

contributes to the reliability of financial statements

The monthly reporting process ensures that the annual and interim consolidated financial statements are reliable. Hard closes are performed at May 31 and October 31, to reduce the workload at June 30 and December 31. Hard close results and balance sheets are reviewed by finance executives from the Finance Department, the Sectors and the General Delegations in the same detail and in accordance with the same principles as the annual and interim financial statements. The entity’s accounts are then analyzed before the final closing dates of June 30 and December 31 and are reviewed by the external auditors. This procedure helps to ensure early detection of any errors and their adjustment during the actual close. A consolidated report is prepared each month for the Company’s general management, with supporting comments and analyses of material events over the period.

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