Assystem - 2018 Register document

BUSINESS REVIEW AND FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

2018 (0.1) (0.2)

2017 (0.4) (0.3) (0.1)

In millions of euros Effect of discounting

Amortised cost of financial liabilities Foreign exchange gains and losses

0.7 0.4

Net gain/(loss) on financial liabilities at fair value through profit or loss

6.4

Miscellaneous financial income and expenses Total other financial income and expenses

(0.8)

(2.8) 2.8

-

8.6 Financial risk management The Group’s risk management strategy is described in detail in Chapter 2, Section 2.2.3 of this Registration Document – Financial risks. 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), the Saudi Arabian riyal (SAR) and the pound sterling (GBP).

Out of the total net gain on financial liabilities at fair value through profit or loss, €0.4 million related to a revision of the assumptions used for calculating the put options granted to non-controlling interests in and commitments to pay dividends to the third-party shareholders of the Turkish company Envy (see Note 10 – Liabilities related to share acquisitions (current and non-current) and other non-current liabilities).

The net assets of the subsidiaries operating in the countries concerned are set out in the table below.

TRY

SAR

GBP 2.0

In millions of local currency

Non-current assets

78.3 43.0

106.2 107.8 214.0

Current assets Total assets

13.0 15.0

5

121.3

Non-current liabilities Current liabilities Total liabilities

0.8

26.9

3.1 3.3 6.4 8.6 9.6

17.3 18.1

101.5 128.4

Net assets at year-end in local currency Net assets at year-end converted into euros

103.2

85.6 19.9

17.0

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

Year-on-year change (in %)

2018 0.17 0.23 1.12

2017 0.22 0.22 1.13

1 TRY = x EUR 1 SAR = x EUR 1 GBP = x EUR

(25)%

5%

(1)%

term loan maturing in September 2022. Interest on these borrowings is indexed against the Euribor for the period concerned, i.e. one and/ or three months. If the Euribor is negative it is deemed to be zero. The Group has not put in place any interest rate hedges as it has only a low amount of debt that is exposed to interest rate risk and it considers that there is little probability of major fluctuations in the Euribor.

EXPOSURE TO INTEREST RATE RISKS The Group’s exposure to interest rate risks concerns the borrowings set up on 19 January 2018, comprising (i) a €150 million revolving credit facility maturing in September 2023, of which €30 million had been drawn down at 31 December 2018, and (ii) a €30 million medium-

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ASSYSTEM

REGISTRATION DOCUMENT 2018