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Potential economic impact of the Rugby World Cup

Building on previous studies for the Rugby World Cup (RWC) 2003 in Australia, RWC 2007 in France and an advance study for RWC 2011 in New Zealand, we used our major event economic impact methodology to estimate the potential impact of a future RWC on a set of potential Host Nations.

Our report provided a thorough analysis of the possible economic gains a future RWC could lead to in various Host Nations. It outlined the generic economic benefits to a country of hosting a major event such as this and provided contextual data for the impact associated with other similar international sports events.

Using our tried and testing methodology for assessing the potential impact of major sports events, we estimated the direct and indirect economic impact of a RWC on the major rugby regions by building a model for each country.

For each region (including Western Europe, SANZAR, and for developing rugby nations) we also identified regional factors that could affect the level of economic impact. Our analysis incorporated the possible contribution of a Host Country’s government via taxation.

The report continues to provide important support to Host Unions and Governments when deciding whether to bid for future RWCs.

“Deloitte’s Rugby World Cup economic impact study was excellent. Deloitte have a real insight into major events and showed rigour in assessing the economic impact that the Rugby World Cup has on host nations.~ Robert Brophy, Head of Finance, World Rugby

Mathieu Colas and Hélène Chaplain join Monitor Deloitte France

Both new partners have been at Deloitte for between six months to one and a half years, and after demonstrating their track record externally and internally, they have been promoted to senior partner and admitted into Monitor Deloitte’s ranks. Monitor Deloitte is the strategy consulting brand of Deloitte Consulting, established in 2012 after Deloitte acquired Monitor Group, a boutique US-headquartered strategic consultancy that was founded by among others strategy guru Michael Porter.

Hélène Chaplain is a senior partner in the firm’s Digital Strategy & Innovation practice, and is the leader of Deloitte’s wider Consumer Business industry segment, which spans services to clients in the automotive, consumer goods, retail, transportation and hospitality industries. She previously spent 17 years at Accenture, since 2001 in the role of partner. In her most recent roles, Chaplain served as Accenture France’s industry lead for consumer goods and was head of the firm’s digital consulting arm for clients in the products landscape.

Mathieu Colas is a senior partner in charge of Monitor Deloitte’s automotive and new mobility offerings. He started his career with Deloitte at Deloitte Digital – the Big Four firm’s rapidly growing digital wing – and previously spent four years at Capgemini Invent and over a decade at Oliver Wyman. Colas focuses on topics including (digital) strategy, large-scale transformation, emerging technologies, advanced analytics and digital transformation.

As part of their new roles, both Colas and Chaplain joined Monitor Deloitte’s annual offsite in June. During the three day trip to Biarritz in the south of France, the firm’s leadership walked through the year’s top accomplishments and the ambitions for the current financial year. Meanwhile, consultants were provided the room to network, share experiences and best practices and enjoy the region’s sunny weather and culinary culture.

Last year, Monitor Deloitte France added Olivier Perrin, a former Accenture Strategy partner, to its leadership ranks in Paris.

Roland Berger appoints eight new partners in Europe

In home-country Germany, Frank Pietras and Uwe Weichenhain have joined the firm’s leadership. Pietras is based in Roland Berger’s Munich office and is an automotive expert. He specialises in automotive advisory, commercial due diligence, growth strategy, market & product strategy and business processes transformation.

Uwe Weichenhain has been with the consultancy for over a decade, and has been named a partner in the firm’s Energy & Infrastructure arm. He is an expert in new technologies that drive the transition towards sustainable infrastructure, including offshore wind, power transmission, gas and LNG, hydrogen, and digital technologies.

In the Netherlands, where Roland Berger has a team of around 100 consultants based in Amsterdam, Koen Besteman and Sameer Mehta have been promoted to partner level. Besteman specialises in the life sciences, and biopharma industry, supporting companies with innovation management, new market development, business cases, and setting up value models for research projects and portfolios. He also has gained extensive experience supporting universities with strategic and financing topics.

Having joined Roland Berger in 2010, Sameer Mehta focuses on merger & acquisition and investor support services. He works with private equity firms and corporate clients on topics related to due diligence, growth & performance improvement and restructuring. Mehta advises clients in a broad range of industries, including pharmaceuticals, healthcare and industrial products, with a particular focus on automotive, media, technology and steel.

In Sweden, Benny Guttman has been appointed a partner in the Gothenburg office. He has previously worked for three consulting firms, Accenture, EY and McKinsey & Company, prior to joining Roland Berger in 2017. In between consulting, he spent eight years at Volvo, the last six of which he was Senior Vice President at Volvo Logistics where he headed Strategy, Corporate Values and Operational Development. Guttman’s work is focused around strategic and operational improvement at clients in the automotive, manufacturing, med-tech and retail industries.

Artem Zakomirnyi has been serving the consulting firm for over twelve years, working from the offices in Moscow, Russia, and Kiev, Ukraine. He specialises in strategic and operations work in the consumer goods and retail industries. Zakomirnyi also has a deep understanding of supply chain and logistics topics, for both the traditional retail as well as online (e-commerce) retail channels.

Based in Bucharest, Romania, Szabolcs Nemes has been with the firm since 2001, in the period developing industry expertise in energy & utilities, telecommunications and transportation. His functional expertise spans strategy development, large-scale transformation, definition of new organisation models, operational excellence and efficiency improvement. Nemes supports clients in Romania and throughout the Central Eastern European region.

Last but not least, the Frenchman Pierre-Antoine Bodin, who has been named a partner in Roland Berger’s Pharma and Healthcare practice. Prior to joining the management consultancy in 2012, he spent eight years in various supply chain and marketing positions at pharma companies Johnson & Johnson and Pfizer.

Beyond the eight new partners in Europe, Roland Berger also promoted four partners in Asia and the Middle East.

JLL expands logistics advisory business with Vincia acquisition

Real estate services firm JLL has expanded its supply chain and logistics advisory platform with the acquisition of Vincia in France.

JLL acquired the French supply chain consulting business for an undisclosed sum and said the deal supports JLL’s plans to expand its industrial and logistics business and strengthen its supply chain platform by investing in markets across Europe, the Middle East and Africa (EMEA).

The deal will expand JLL’s supply chain and logistics platform which currently provides services to landlords, occupiers and developers with more than 250 dedicated experts across 18 locations in EMEA.

Established 20 years ago, Vincia specialises in helping clients in the manufacturing and distribution services sectors to enhance their performance in the areas of service, cost and quality.

The acquisition of Vincia strengthens JLL’s capabilities in the sector which follows the acquisition of logistics and supply chain firm GCL Europe in 2014.

Charles Boudet, managing director, JLL France, said: “At a time of changing purchasing behaviour and the widespread introduction of omni-channel services, the logistics and supply chain market presents new opportunities for our clients.

“This acquisition strengthens our expertise in the sector and is key to enhancing our ambitions to grow our supply chain and logistics operations in France and beyond.”

Laurent Vallas, regional director and industrial and logistics assets sponsor, JLL France, said: “The acquisition of Vincia enables us to respond to the growing market demand for supply chain consulting services.

“It is an expansion of our capabilities in the sector which follows our acquisition of GCL Europe in 2014.”

Fabrice Mattei and Pascal Querro, co-founders of Vincia, said: “We have worked with JLL for a number of years on key projects.

“These shared experiences have always delivered great value to our clients and have proven that we share the same principles and culture of excellence.”

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Jerôme Kerviel trader’s case: 19 December 2018

On 19 December 2018, the French Court of Appeal of Paris (RG 16/09186) stated that the dismissal of Jerôme Kerviel, French trader from SGCIB (Société Générale Corporate and Investment Banking), the investment bank of Société Générale is fair (on the basis of a gross negligence – faute grave).

This overrules the decision (jugement) of the Conseil de Prud’hommes (French jurisdiction dedicated to labour law) dated 7 June 2016, whereby the dismissal was considered unfair (i.e. without a material and true reason) (cause réelle et sérieuse). In this first instance, Jerôme Kerviel obtained not only €100,000 because of the unfair dismissal but also (i) €20,000 due to the vexatious nature of the dismissal, (ii) €18,083.32 as regards to compensation in lieu of notice (indemnité compensatrice de préavis), (iii) €1,808.33 in relation to unpaid vacation pay (congés payés), (iv) €13,609.23 in connection with conventional severance pay (indemnité conventionnelle de licenciement) and (v) €300,000 as to the unpaid bonus for 2007 (plus €2,000 in relation to article 700 of the French Code de procédure civile).

The ratio decidendi of the Court of Appeal of Paris is based on the characterization of the conduct of Jérôme Kerviel during his contract. The blames in the letter of dismissal are considered grounded by the Court of Appeal of Paris (even if previously been ruled purged due to the knowledge of them by the employer). In particular, the blame considered crucial by the Court is the taking of directional positions (i.e. at a highest analyzed value), while at the same time going over authorization (€50 billion for an authorization of €125 million for the whole desk only).

The Court of Appeal of Paris states however that the wilful misconduct (faute intentionnelle) is not characterized: Jérôme Kerviel did not mean to cause the loss of the estimated circa €5 billion. The position of the Court is in line with the statements of Jérôme Kerviel who considered himself as being part of a spur gear (as mentioned in his book “L’engrenage, mémoire d’un trader”). This decision gives a warning to the traders: taking inconsiderate risks could lead to a dismissal (with maybe prison), and at the same time a balance: a bank which loosens internal regulations (or admits implicitly / explicitly / or maybe intentionally some inappropriate derogations) cannot fully blame a trader.

The ratio decidendi of the Court of Appeal of Paris is also grounded on the force of res judicata (for res judicata pro veritate habetur – autorité de la chose jugée). This means that, once the decision is final, such a decision is considered as representing the judicial truth. Jérôme Kerviel was indeed convicted with offences (délits pénaux) by a distinct decision of the French Cour de cassation dated 19 March 2014 (Ch. Crim., pourvoi n°12-87416). In this respect, the Court of Appeal of Paris qualifies the force res judicata principle, as absolute. As a consequence, other civil French pending decisions are to be linked (and bound) by the decision of the French Cour de cassation. In this perspective, the conviction of the trader by the French Cour de cassation influes on, and binds the decision of the Court of Appeal of Paris, ruling the labor decision.

It should however be considered that the absolute feature of the force res judicata, as stated in the ruling of the Court of Appeal of Paris, should be subject to challenge. As such, since any legal concept, even considered as absolute, are, in a democratic country, subject to other legal concepts tempering (within the meaning of qualifying) such absolute rights.

It should also be considered that this characterization by the Court of Appeal of Paris is more in line with what would be acceptable in a context where the bank is considered as being itself in default, since being itself convicted by the French banking regulator – Commission Bancaire for the lack of control and monitoring of the trading systems.

In light of this, the Court of Appeal of Versailles ruled on 23 September 2016 (room 9 – RG: 14/01570) (ruling by a review of the case decided by the French Cour de Cassation dated 19 March 2014 (Ch. Crim., pourvoi n°12-87416)) that Jérôme Kerviel is only partially responsible for the prejudice caused to the Société Générale and convicts him to pay €1 million only (instead of circa €5 billion).

Up to date 19 December 2018

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Increase in share capital (reserved to employees)

The French Supreme Court related to private matters (Cour de cassation) ruled as a ratio decidendi on 28 November 2018 that the single vote on the resolution related to an increase in share capital reserved to employees is considered satisfactory to regularize an increase in share capital not subject to a vote on a preceding general meeting. This allows the possibility for a general meeting to ratify an increase in share capital reserved to employees (due to the relativity of the nullity – nullité relative) and is in line with the spirit of company law to allow ratification as much as possible to ensure legal safety.

Up to date 28 November 2018