ASSYSTEM_Registration_Document_2017

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS

Cash flows related to acquisitions of shares in companies were as follows in 2017 and 2016:

2017 (20.6) (17.0)

2016 (12.4) (14.2)

In millions of euros GPS acquisitions E&I acquisitions

Acquisition of a 5% interest in Framatome* Acquisitions of shares in companies * See Note 6.5 – Non-current financial assets

(124.1) (161.7)

-

(26.6)

3.3

Goodwill

In accordance with IFRS 3R, goodwill is not amortised but is tested for impairment at least once a year. For the purpose of impairment testing, goodwill is allocated to cash-generating units (CGUs) or groups of CGUs. A CGU corresponds to the smallest identifiable Group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The level of CGU used for goodwill impairment tests depends on the characteristics of the business or market of each operation. The Group carries out impairment tests at each year-end and whenever there is an indication of impairment in order to estimate the CGU’s recoverable amount. Recoverable amount corresponds to the higher of the CGU’s fair value less costs of disposal and its value in use (the present value of the future cash flows expected to be derived from the CGU). When the recoverable amount of a CGU is less than its carrying amount, an impairment loss is recognised and is deducted to the extent possible from the carrying amount of the goodwill allocated to the CGU. If a subsidiary is sold, the goodwill allocated to that subsidiary is taken into account in determining the proceeds of the sale. Goodwill arising on acquisitions of fully-consolidated companies is presented in a separate line of the financial statements. Goodwill related to companies accounted for using the equity method is presented in the lines of the statement of financial position concerning equity-accounted investees.

The Group’s operating segments are as follows: Global Product Solutions (outsourced R&D business that was sold during the year (see Note 2 – Significant events of the year), Energy & Infrastructure (complex infrastructure engineering) and Staffing (worldwide assignment of consultants specialised in Oil & Gas and other industrial sectors). These segments correspond to the cash-generating units (CGUs) used by the Group at 31 December 2017, which comply with the IFRS definition of CGUs.

6

Global Product Solutions

Energy & Infrastructure

Staffing

Total

In millions of euros

Carrying amount at 1 Jan. 2017 Increases related to business combinations Decreases related to discontinued operations

112.8

65.9 17.3

6.1

184.8

11.9

- - - -

29.2

(124.7)

-

(124.7)

Currency translation differences

(0.4)

(7.4) (0.4) 75.4

(7.8)

Other movements

0.4

-

Carrying amount at 31 Dec. 2017 Accumulated impairment losses at 31 Dec. 2017

6.1

81.5 (14.0)

- -

-

(14.0)

The impacts of changes in scope of consolidation are described in Note 3.2 – Business combinations.

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ASSYSTEM

REGISTRATION DOCUMENT 2017