ASSYSTEM_Registration_Document_2017

MANAGEMENT REPORT

GROUP RESULTS

At €45.1 million, revenue for the Staffing business retreated 13.2% year on year at constant exchange rates, or 15.3% on a reported basis, as performance was weighed down throughout the year by lower business volumes in the Oil & Gas sector. However, projects in the Industry sector have now started up, which should help to at least stabilise annual revenue in 2018.

Revenue for the Energy & Infrastructure business climbed 7.4% to €341.3 million. Within this business, the Nuclear segment reported revenue of €205.5 million, up 8.9%, or 9.6% on a like-for-like basis, and Energy Transition & Infrastructures revenue rose 5.3% to €135.8 million, with 2.1% like-for-like growth (or 4.8% excluding Radicon's revenue decline).

3.2.3 RESULTS OF OPERATIONS AND FINANCIAL POSITION 3.2.3.1 Operating profit before non-recurring items (EBITA) Consolidated EBITA advanced 17.6% to €26.0 million in 2017 from €22.1 million in 2016, and EBITA margin represented 6.6% of revenue, up 80 basis points year on year. EBITA (1)

3

2017 26.0 27.9

% of revenue

2016*

% of revenue

In millions of euros

Group

6.6% 8.2% 4.2%

22.1 24.1

5.8% 7.6% 4.6%

Energy & Infrastructure

Staffing

1.9

2.4

Holding company and Other

(3.8)

-

(4.4)

-

* Restated to facilitate year-on-year comparisons. (1) Operating profit before non-recurring items (EBITA) including share of profit of equity-accounted investees (€1.4 million in 2016 and €0.9 million in 2017).

3.2.3.3 Financial income and expenses Assystem recorded net financial income of €0.1 million for the year, including €2.7 million in “Net financial expense on cash and debt” which was more than offset by a net €2.8 million positive impact from “Other financial income and expenses”. The income tax expense for continuing operations was €4.8 million. This total includes €1.3 million in net income related to dividend tax and a €0.1 million tax charge on the coupon received on the ATG convertible bonds. 3.2.3.4 Profit for the period Profit from discontinued operations amounted to €391.3 million and primarily corresponds to the gain arising on the transfer of control of the former GPS division to ATG. It also includes the profit figure of the former GPS division for the first three quarters of 2017. Consolidated profit for the period came to €404.6 million, of which €0.5 million was attributable to non-controlling interests. The Group estimates that its pro forma consolidated profit for the period amounts to €29.0 million. This figure, which does not include non- recurring income or expenses, was calculated based on the following: ● an estimate of what ATG's contribution to Assystem's 2017 consolidated profit would have been (including the income tax charge on the coupon on the convertible bonds) if ATG had been set up on 1 January 2017 and if Assystem had held a 39.2% stake in ATG at that date (i.e. €13.0 million); ● an estimate of the annual recurring net financial expense based on the Group's balance sheet configuration at 31 December 2017 (i.e. €1.9 million); ● EBITA for the year (i.e. €26.0 million);

EBITA for the Energy & Infrastructure business climbed €3.8 million to €27.9 million, which drove a 60 basis-point increase in EBITA margin to 8.2%. Staffing EBITA decreased by €0.5 million to €1.9 million, representing an EBITA margin of 4.2%. The Group’s “Holding company” expenses, net of the EBITA of the activities classified in the “Other” category, had a €3.8 million negative impact on consolidated EBITA in 2017 versus a €4.4 million negative impact in 2016 (as restated in order to facilitate year-on-year comparisons). 3.2.3.2 Operating profit Consolidated operating profit after non-recurring items came to €14.2 million, up 11.8% on the €12.7 million reported for 2016. Non-recurring items represented a net expense of €11.8 million, breaking down as: ● €6.8 million corresponding to a provision recognised in addition to that booked in 2015 for a tax dispute concerning the former GPS division’s research tax credits for 2010, 2011 and 2012. The risks relating to this dispute are now fully covered by this provision. ● €5 million primarily representing charges and provisions related to (i) adapting some of the Group's resources to its new scope of consolidation and (ii) restructuring measures for conventional energy activities. The contribution of Assystem Technologies Groupe (ATG) to Assystem's consolidated profit for 2017 (before the tax recognised on the coupon on ATG convertible bonds held by Assystem) was €3.8 million, breaking down as (i) €2.3 million for Assystem's 39.2% share of ATG's profit for the period from 1 October 2017 to 31 December 2017 and (ii) €1.5 million in income from the convertible bonds.

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ASSYSTEM

REGISTRATION DOCUMENT 2017