Assystem - 2018 Register document

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BUSINESS REVIEW AND FINANCIAL STATEMENTS

STATUTORY AUDITORS’ REPORT ON THE PARENT COMPANY FINANCIAL STATEMENTS

VALUATION OF INVESTMENTS IN SUBSIDIARIES AND OTHER NON-CONTROLLING INTERESTS Notes to the financial statements 2, 3.2 and 4 Risk Our response

As at 31 December 2018, the net book value of the investments held in subsidiaries and other non-controlling interests amounted to 385.9 million of euros, accounting for 68% of the Company’s balance sheet total. As mentioned in Note 2 – Accounting rules and principles – Investments in subsidiaries and other non-controlling interests” to the financial statements, the investments are recorded at cost at the date of acquisition or at their contribution value. At each year-end, the Company estimates the value in use of its investments in order to determine whether the value in use of each investment is lower than its carrying value. An impairment is recognised when the value in use appears to be lower than the carrying value. For the purpose of estimating the value in use, and depending on the nature of the business operated by the investment, the Company uses one of the following methods: an economic approach (based on projected cash flows or on the multiples method) or a patrimonial approach (based on the percentage held in the investment’s net equity). We have considered the valuation of investments in subsidiaries and other non- controlling interests as a key audit matter, given their materiality to the Company’s balance sheet, the high degree of estimation and judgement required from management in choosing the calculation method for the value in use and the sensitivity, depending on the calculation method adopted, of this value to changes in forecast assumptions.

For each investment, we have highlighted the method used by the Company for calculating the value in use of the investment and have assessed whether the method used was appropriate with regards to the economic characteristics of the investment. When the approach based on projected cash flows was used, we have: • assessed the consistency of the budgetary data used with those presented to the Audit Committee and approved by the Board of Directors, and the consistency of forecast data with budgetary assumptions; • checked the consistency of the assumptions made for the long term growth rate with the economic environment prevailing as at the financial statements closing date; • checked, with the assistance of our evaluation specialists, the reasonableness of the assumptions used in determining the discounting rate; • compared the forecasts used in the past with the actual performance shown with a view to assessing whether past objectives were met or not; • checked that the value resulting from the cash flow forecasts was adjusted by the amount of indebtedness of the investment concerned. When the approach based on multiples was used, we have assessed the consistency of the aggregate used with the financial statements and the rationale behind the multiples used in comparison with those applied in similar business sectors. When a patrimonial approach was implemented, we have checked that the net equity data used were in line with the financial statements of the investments concerned, either audited or subject to agreed-upon procedures, and that the restatements made to the net equity, if any, were supported by a relevant documentation. Should have these investments been made close to the year end date, we have examined the available documentation used in the determination of the shares purchase price. We have also assessed the appropriateness of the information disclosed in the Notes 2 – Basis of preparation and summary of significant accounting policies, 3.2 – Long- term investments and 4 – List of subsidiaries and affiliates to the financial statements.

Verification of the management report and of the other documents provided to shareholders We have also performed, in accordance with professional standards applicable in France, the specific verifications required by French laws and regulations. INFORMATION GIVEN IN THE MANAGEMENT REPORT AND IN THE OTHER DOCUMENTS WITH RESPECT TO THE FINANCIAL POSITION AND THE FINANCIAL STATEMENTS PROVIDED TO THE SHAREHOLDERS We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors and in the other documents with respect to the financial position and the financial statements provided to the shareholders. We attest the fair presentation and the consistency with the financial statements of the information relating to payment terms, required under Article D. 441-4 of the French Commercial Code. We attest that the consolidated declaration of extra-financial performance, required under Article L. 225-102-1 of the French Commercial Code, is included in the management report, being specified that, in accordance with the provisions of Article L. 823-10 of this Code, we have not verified the fair presentation and the consistency with the consolidated financial statements of the information provided in this declaration and this information must be reported by an independent third party. REPORT ON CORPORATE GOVERNANCE We attest that the Board of Directors’ report on corporate governance sets out the information required by Articles L. 225-37-3 and L. 225-37-4 of the French Commercial Code. Concerning the information given in accordance with the requirements of Article L. 225-37-3 of the French Commercial Code relating to remunerations and benefits received by the directors and any other commitments made in their favour, we have verified its consistency with the financial statements, or with the underlying information used to prepare these financial statements and, where appropriate, with the information obtained by your Company from controlling and controlled companies. Based on these procedures, we attest the accuracy and fair presentation of this information. With respect to the information relating to items that your Company considered likely to have an impact in the event of a public purchase offer or exchange, provided pursuant to Article L. 225-37-5 of the French Commercial Code, we have agreed these to the source documents communicated to us. Based on our work, we have no observations to make on this information.

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ASSYSTEM

REGISTRATION DOCUMENT 2018

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