Assystem - 2018 Register document

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BUSINESS REVIEW AND FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

Additionally, the following principles apply to business combinations:

● any contingent consideration is measured at fair value at the acquisition date, and any subsequent changes in the fair value of the contingent consideration are recognised in profit; ● acquisition-related costs are expensed as incurred. In accordance with IFRS 10, when the proportion of the equity in a subsidiary held by non-controlling interests changes, the Group recognises directly in “Equity attributable to owners of the parent” any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received.

EP6 has 25 employees and generated some €3 million in revenue in 2018, with €0.3 million in operating profit.

BUSINESS COMBINATIONS CARRIED OUT IN 2018 In late December 2018, Assystem acquired EP-6 Consulting (EP6), which reinforced the Group’s project management skills.

The fair value of the net assets acquired breaks down as follows:

EP6 0.3 0.7 1.0 0.1 0.5 0.6 0.4 EP6 1.7 1.7 0.4 1.3

In millions of euros

Cash and cash equivalents

Other current and non-current assets

Total assets

Financial liabilities

Other current and non-current liabilities

Total liabilities

Net assets

Goodwill related to the acquisition, as determined using the full goodwill method, breaks down as follows:

In millions of euros

Portion of the purchase price paid in cash

Total purchase price

Fair value of net assets acquired

Goodwill

The cash flows relating to the acquisition can be analysed as follows:

EP6 0.2

In millions of euros

Cash and cash equivalents

Bank overdrafts

(0.1) 0.1 (1.7) (1.6)

Net cash acquired Purchase price of shares Net cash outflow

In accordance with IFRS 3R, the Group will complete the initial accounting for the acquisition of EP6 within one year of the date it acquired control of the company, i.e. by the end of 2019.

In 2018, the Group completed the initial accounting for the acquisition of Euro Contrôle Projet and Assystem Care Holding (formerly The Biotech Quality Group), which led to a €2.4 million increase in goodwill (see Note 3.3 – Goodwill).

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ASSYSTEM

REGISTRATION DOCUMENT 2018