ASSYSTEM_Registration_Document_2017

6

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

OTHER LONG-AND SHORT-TERM DEBT AND NON-CURRENT AND CURRENT FINANCIAL LIABILITIES

Effect of changes in scope of consolidation

Decreases related to discontinued operations

Changes in fair value

Currency translation differences

At beginning of year

Net increase Repayments

Other movements

At year-end

In millions of euros Bank borrowings

0.3 4.1

- -

- -

0.2

- -

- -

-

(0.5)

-

Sundry financial liabilities

-

(0.5)

-

3.6

Total non-current financial liabilities

4.4

-

-

0.2

-

-

(0.5)

(0.5)

3.6

Bank borrowings

80.5 102.9 (186.0)

-

-

-

- -

2.6

-

Sundry financial liabilities Total current financial liabilities

2.2

6.5

(0.1)

1.8

(8.6)

(0.8)

-

1.0

82.7 109.4 (186.1) 80.8 102.9 (186.0)

1.8 0.2 1.8 2.0

(8.6)

(0.8)

-

2.6 2.1

1.0

Bank borrowings

-

-

-

-

Sundry financial liabilities

6.3

6.5

(0.1)

(8.6) (8.6)

(0.8) (0.8)

(0.5) (0.5)

-

4.6 4.6

Total

87.1 109.4 (186.1)

2.1

on the lenders’ agreement). This facility is subject to a covenant based on the consolidated gearing ratio (net debt/EBITDA) for the last twelve months as adjusted for acquisitions and divestments. It is measured at half-yearly intervals and must not exceed 3.75 at 31 December and 3.95 at 30 June. Any breach of the covenant would trigger early repayment of the facility's outstanding amounts. “Other movements” primarily correspond to the accelerated amortisation of the arrangement costs of the medium-term credit facilities that were repaid in 2017. The triggering event for the early repayment of these facilities was the transfer of control of GPS. The income statement impact of this accelerated amortisation was recognised in “Profit from discontinued operations” and amounted to €1.5 million. Changes in fair value relate to derivatives (see Note 8.3 – Derivative instruments).

During the year, the Group:

● Repaid the €80 million outstanding under the revolving credit facility set up in 2013. ● Set up an €80 million medium-term loan maturing in January 2022 as well as a €200 million revolving credit facility, also maturing in January 2022 of which €25 million was drawn down during the year. As required under the corresponding loan agreements, these two credit facilities were fully repaid following the transfer of control of GPS and were subsequently cancelled. The net proceeds from new borrowings came to €102.9 million in 2017 taking into account the related arrangement costs. ● Set up another revolving credit facility on 28 September 2017, amounting to €120 million and maturing in September 2022 (with two one-year extension options exercisable by Assystem but contingent

8.3

Derivative instruments

Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured at fair value at each reporting date. The method of recognising the resulting fair value gains or losses depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the hedged item. On inception of a hedge, the Group documents the relationship between the hedged item and the hedging instrument. The Group also documents its estimates both on inception and prospectively to determine the effectiveness of the hedge in offsetting changes in fair value or cash flows attributable to the hedged risk. Fair value hedges Fair value hedges are used to hedge the Group's exposure to changes in fair value of a recognised asset or liability (or an identified portion of such an asset or liability) or a firm commitment to purchase or sell an asset at a pre-defined price, that is attributable to a particular risk and could affect profit. Changes in fair value are recognised in the income statement. Cash flow hedges A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction and could affect profit.

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ASSYSTEM

REGISTRATION DOCUMENT 2017