Assystem - 2018 Register document

BUSINESS REVIEW AND FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

employees aged over 60. The discount rate used for France in 2018 was 1.6% (versus 1.5% in 2017). The composite rate applied for 2018 was determined by reference to the Bloomberg and iBoxx rates.

Current service cost is recognised under “Depreciation, amortisation and provisions for recurring operating items, net” and interest expense is recorded under “Other financial income and expenses”. The actuarial gains and losses recognised directly in other comprehensive income mainly relate to the effect of changes in the turnover rate for

PRESENT VALUE OF THE POST-EMPLOYMENT BENEFIT OBLIGATION

2018 13.7

2017 27.6

In millions of euros

Present value of the post-employment benefit obligation at 1 January

Current service cost

1.4 0.2

1.8 0.3 1.5

Interest expense

Remeasurement of the net liability recognised in equity

(0.4)

Currency translation differences

0.1 0.4

(0.3)

Increases related to business combinations Decreases related to discontinued operations

0.1

-

(16.6) (0.7) 13.7

Benefits paid

(0.7) 14.7

Present value of the post-employment benefit obligation at 31 December

ACTUARIAL ASSUMPTIONS

2018

2017

In %

France Discount rate

1.6% 1.5%

1.5% 1.5%

Projected rate of salary increases

DEFINED CONTRIBUTION PLANS

5

2018 (11.8)

2017 (9.7)

In millions of euros

Amount expensed for defined contribution plans

SENSITIVITY ANALYSIS The liability recognised for statutory retirement bonuses payable in accordance with the Syntec collective bargaining agreement is calculated based on actuarial assumptions relating to the following: mortality rate, staff turnover, future salaries, discount rate, and expected return on plan assets. Changes in these assumptions can impact the liability to a greater or lesser extent. The Group has chosen to present a sensitivity analysis for the discount rate applicable for France, since any change in this assumption could significantly affect equity (net of tax):

1% decrease

0.5% decrease

0.5% increase

1% increase

Impact on equity (in millions of euros)

(1.2)

(0.5)

0.5

1.0

(0.3)% 10.9%

(0.1)%

0.1%

0.3%

Impact on equity (%)

4.5%

(4.5)%

(9.1)%

Impact on the net liability (%)

5.3.3 SHARE-BASED PAYMENTS

In accordance with IFRS 2 – Share-based Payment, when the Group receives services from employees as consideration for share-based payments, the fair value of the employee services received in exchange for the grant of the share-based payments is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the benefits granted to the employees concerned under free share/performance share plans. The expense is recognised on a straight-line basis over the vesting period. Although the share-based payment expense – which is recognised as a non-recurring expense in the consolidated income statement – reduces profit for the period, it has no impact on total equity.

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ASSYSTEM

REGISTRATION DOCUMENT 2018