ASSYSTEM_Registration_Document_2017

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS

8.6 Financial risk management The Group’s financial risk management policy is described in detail in Chapter 5 – Risk factors. This Note sets out the figures related to financial risk management.

EXPOSURE TO RISKS RELATED TO THE TRANSLATION INTO EUROS OF THE FINANCIAL STATEMENTS OF FOREIGN SUBSIDIARIES DENOMINATED IN A LOCAL CURRENCY The Group is exposed to risks related to the translation into euros of the financial statements of foreign subsidiaries denominated in local currency. The Group’s main risk exposure in this respect concerns the translation into euros of financial statements denominated in the Turkish lira (TRY) and the Saudi Arabian riyal (SAR). The net assets of the subsidiaries operating in these two countries are set out in the table below;

TRY

SAR

In millions of local currency

Non-current assets

77.8 20.3 98.1

105.4

Current assets Total assets

66.9

172.3

Non-current liabilities Current liabilities Total liabilities

-

24.9 60.4 85.3 87.0

7.3 7.3

Net assets

90.8

The year-on-year change in the exchange rates of these currencies was as follows:

2017

2016 Year-on-year change (%)

1 TRY = x EUR 1 SAR = x EUR

0.2200 0.2224

0.2714 0.2560

(19)% (13)%

RESIDUAL CONTRACTUAL MATURITIES The residual contractual maturities of the Group’s financial liabilities break down as follows (including interest payments). The contractual cash flows presented – which cover coupons, interest payments and redemptions/repayments – have not been discounted.

Carrying amount at 31/12/2017

Contractual cash flows

Due within 1 year

Due in 1-5 years

Due beyond 5 years

In millions of euros

Sundry financial liabilities

4.6

4.6

1.0

2.2

1.4

Current and non-current liabilities related to share acquisitions

9.1 1.8

16.1

- -

7.9 1.5

8.2 1.6

6

Other non-current liabilities

3.1

Trade payables

32.8

32.8

32.8

- -

- -

6.7

6.7

6.7 7.1

Other current liabilities (1)

12.6 75.9

5.4

0.1

Operating leases (2)

Total contractual obligations

55.0

47.6

17.0

11.3

(1) Excluding accrued taxes and payroll costs and deferred income. (2) Off-balance sheet commitments.

PROVISIONS AND CONTINGENT LIABILITIES

NOTE 9

In accordance with IAS 37, a provision is recorded when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the obligation can be measured reliably. Where the effect of the time value of money is material, provisions are discounted using a discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a financial expense.

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ASSYSTEM

REGISTRATION DOCUMENT 2017