Assystem - 2018 Register document

5

BUSINESS REVIEW AND FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

A reconciliation between cash and cash equivalents presented in the consolidated statement of cash flows and the statement of financial position is shown in the table below.

2018 28.2 (0.9) 27.3 32.4 (0.3) 32.1

2017 85.4 (1.0) 84.4 28.2 (0.9) 27.3

In millions of euros

Cash and cash equivalents

Bank overdrafts

Net cash and cash equivalents at beginning of year

Cash and cash equivalents

Bank overdrafts

Net cash and cash equivalents at year-end

8.2

Debt and other financial liabilities

Debt and other financial liabilities are initially recognised at fair value less transaction costs, and are subsequently measured at amortised cost determined using the effective interest method. They are classified as “current” when the Group is required to settle them within twelve months after the reporting date and as “non-current” when the settlement is due beyond those twelve months.

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

Effect of changes in scope of consolidation

At beginning of year

Currency translation differences

Other movements

Net increase

Repayments

At year-end

In millions of euros Bank borrowings

-

59.7

- -

- -

-

(0.3) (0.1) (0.4) (0.6) (0.6) (0.3) (0.7) (1.0) -

59.4

Sundry financial liabilities

3.6 3.6

-

0.2 0.2

3.7

Total non-current financial liabilities

59.7

-

-

63.1

Bank borrowings

-

- -

-

-

- -

-

Sundry financial liabilities

1.0 1.0

(0.1) (0.1)

0.1 0.1

0.4 0.4

Total current financial liabilities

-

-

Bank borrowings

-

59.7

-

-

-

59.4

Sundry financial liabilities

4.6 4.6

-

(0.1) (0.1)

0.1 0.1

0.2 0.2

4.1

Total

59.7

63.5

The Group’s revolving credit facility and its medium-term bullet loan are subject to a financial covenant. Any breach of this covenant would trigger early repayment of all of the outstanding amounts classified as short-term debt and current financial liabilities at the year-end. The covenant is based on the consolidated gearing ratio (consolidated net debt/EBITDA for the past 12 months as adjusted for acquisitions and divestments). This ratio is measured at the end of each half-year and annual period and must not exceed 3.95 at 30 June and 3.75 at 31 December. At 31 December 2018, the Group’s gearing ratio was below the ceiling specified in the covenant.

The main movements during the year were as follows:

● In order to finance its additional investment in Expleo Group, the Group (i) put in place a €30 million medium-to-long term bullet loan repayable in September 2022 and (ii) drew down €30 million of its revolving credit facility set up in September 2017. At the same time, the maximum amount of this revolving credit facility was increased from €120 million to €150 million and its maturity was extended to September 2023. The net proceeds from these new borrowings came to €59.7 million taking into account the €0.3 million in related arrangement cost. ● “Other movements” primarily correspond to (i) fair value remeasurements of derivatives, representing a €0.3 million reduction in financial liabilities (see Note 8.3 – Derivative instruments) and (ii) a €0.6 million decrease in bank overdrafts.

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ASSYSTEM

REGISTRATION DOCUMENT 2018