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2014 Registration Document
Corporate governance
3
Internal control
3.6.2.3
Control over financial
communications
◗
Role and mission of financial communications
The objective of financial communications is to provide information:
■
on a continuous basis: quality information must be provided regularly
over time. This is essential to the Group’s credibility and to ensuring
shareholder loyalty;
■
that conveys a clear, consistent message: communications must allow
investors to gain a precise, accurate understanding of the Company’s
value and management’s capacity to boost value even further. Investors
must be properly informed in order to make decisions;
■
while maintaining the principle of shareholder equality with regard
to information: any financial information that might have an impact
on market prices must be made public through
a single, centralized
source at Group level.
◗
Organization of financial communications
Financial announcements are adressed to a diverse audience, primarily
comprised of institutional investors, individuals and employees, through
four channels:
■
the Shareholder Relations department is responsible for informing
the general public (individual shareholders);
■
The Investor Relations department, Chief Financial Officer and the
Chairman are the sole contacts for analysts and institutional investors;
■
the Human Resources department, with support from the
Communications department, manages information intended for
employees;
■
the Communications department manages press relations.
In practice, financial messages are prepared through close collaboration
between the Finance and Communications departments.
They are delivered as required by law (through an annual Shareholders’
Meeting) and according to the regulations of the French Financial Markets
Authority (periodic publications, press releases). Furthermore, beyond its
legal obligations, Carrefour employs a wide array of media for its financial
communications. They are delivered as required by law through Annual
Shareholders’ Meetings. The Group may utilize the press, the Internet,
direct telephone contact, individual meetings and special forums.
◗
Procedures for controlling financial
communications
The Finance department is the exclusive source of financial information.
Internal controls regarding the financial communications process focus
on compliance with the principle of shareholder equality, among other
issues. All press releases and significant announcements are prepared by
mutual agreement between the Financial Communications department,
which is part of the Finance department, and the Group Communications
department.
The segregation of roles and responsibilities allows for strict independence
between managers, sensitive departments (e.g. Mergers and Acquisitions)
and the Financial Communications department.
◗
Financial communications policy
The Chief Financial Officer defines and implements policy on disclosing
financial results to the markets. The Carrefour group discloses its sales
(including tax) each quarter, and reports all of its results on a half-yearly
basis. Each disclosure is first presented to the Board of Directors.
At the beginning of the 2014 fiscal year, the Group did not issue guidance
on its underlying earnings target. However, throughout the fiscal year the
Finance department checks that the underlying earnings target provided
by the analyst consensus remains achievable and, where applicable,
issues a revision when budget forecasts reveal a significant discrepancy.