Contents

4 Investment case
6 Managing restructuring responsibly
8 Two baskets of stocks for a pro-active investment strategy on restructuring
10 Social performance and risk positively linked to financial performance!
12 Restructuring as a mainstream investment theme
12 Already a theme before the current crisis!
12 Economic crisis catalyst will mean increased restructuring and negative impacts for many companies
13 What has changed since our last report
14 Two baskets of stocks for a pro-active investment strategy on restructuring
15 Basket 1: our preferred Restructuring-financial stocks
16 Basket 2: Our least preferred Restructuring-financial stocks
17 Legal framework for collective dismissals: EU and North America
19 Managing restructuring responsibly: EU companies are more reactive than proactive
19 What is a responsible restructuring according to Vigeo?
21 Overall performance of European companies is weak
27 Social dialogue, career management and training are key performance drivers
30 Restructuring: it’s time to think differently
30 Financial AND social issues must be taken into account
34 Introducing a risk management approach to restructuring
38 Does restructuring strongly affect the number of employees?
39 Managing restructuring risk adds to financial performance!
39 Restructuring skills and risk positively linked to financial performance!
43 Sector review and European stocks
43 Methodology for calculating net restructuring risk
44 Auto: high risk, low EBIT margins, good restructuring skills
45 Capital Goods (General): medium risk, frequent small restructuring plans
46 Capital Goods (Aerospace): huge differences across the sector, fragile EBIT
47 Capital Goods (Renewables): relatively good social picture
48 Capital Goods (Others): low quality restructuring management, national operators at risk
49 Consumer Durables & Apparels: low risk sector, high EBIT margins, good management of restructuring
50 Energy: well-sheltered against restructuring risk, differentiated quality of management of restructuring
51 Food Staples: low-to-medium risk sector
52 Food & Beverage: low to medium risk sector
53 Hotels & Leisure: staff is key but huge discrepancies across the sector
54 Household personal goods: low-to-medium risk
55 Materials: middle of the pack
56 Chemicals: medium restructuring risk but deteriorating risk profile with the slowdown
57 Metals & Mining: low risk but deteriorating risk profile with the slowdown
58 Media: low risk except for diversified groups
59 Health & Pharma: high levels of profitability mean low risk
60 Retailing: high restructuring risk
61 Software: most dependent sector
62 Technology: medium risk with deteriorating profile with the current slowdown
63 Telecoms: limited restructuring risk
64 Transport: highly cyclical and currently suffering, EBIT under pressure
65 Utilities: limited staff costs and risk
66 Appendix 1 - Our European coverage universe
70 Appendix 2 – Vigeo: Europe’s leading supplier of extra-financial analysis
70 Vigeo
70 Vigeo research methodology (Equitics)
71 Appendix 3 – Vigeo’s management of restructuring evaluation model, detailed scales
71 Leadership commitment evaluation scale
71 Implementation processes evaluation scale
71 Results evaluation scale