Assystem - 2018 Register document

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RISK GOVERNANCE AND MANAGEMENT RISK GOVERNANCE AND MANAGEMENT

Disposals of assets and securities are validated by the Board of Directors and the executive management team and are managed and monitored at Group level in conjunction with the operations departments concerned. Legal disputes Legal disputes involving Assystem SA and its subsidiaries are managed, monitored and reported solely by the Group Legal Affairs & Compliance Department in conjunction with legal experts at country level and/or experts in contract, corporate and securities trading law. A quarterly reporting system has been set up in France whereby the potential financial impact of legal disputes is analysed by the finance directors of each operations department, and, if required, by the Group Finance Department. Communication of results The preparation and validation of press releases and investor presentations concerning the Group’s results are governed by a specific procedure involving the Group’s executive management team, the Finance Department, the Communications Department and the Statutory Auditors. Draft financial releases are submitted to the Audit Committee and the Board of Directors for review. The Group takes all reasonable measures to provide regular, reliable, clear and transparent information to its shareholders and financial analysts. Information is provided through press releases, the quarterly publication of the Group’s revenue figures and the half-yearly and yearly publication of its results. The Group organises meetings with financial analysts twice a year, when it publishes its half-yearly and annual results, as well as conference calls four times a year, when it publishes its quarterly revenue figures. Financial reporting The Group’s financial reporting includes a set of indicators and aggregates which allow for a finely-tuned analysis of the performance of the various subsidiaries and business units. In addition to these indicators, the Group specifically monitors its indirect costs, billable staff time and billing rates. All of the tools and systems used are rounded out by the Group’s internal control measures. 2.1.2.2 Internal communication The Intranet and the reporting and consolidation system are the two centralised communication channels used by the Group to relay key information that is necessary for the people concerned to exercise their responsibilities. The QMS manual and the main procedures applicable at local level (relating to IT, human resources and project management) are published on the Intranet. All of the subsidiaries are equipped with the Group reporting and consolidation system, which is the platform used for the financial information published by the Group. An accounting guide is distributed to all Group subsidiaries to ensure that information is submitted in a standardised fashion. The Group communicates with its subsidiaries by circulating memorandums and procedures in order to ensure that matters affecting

Currency and interest rate hedges as well as the counterparties for these hedges are centralised at the level of Assystem SA. The number of banks used for these instruments is limited. The Group has chosen Swift Net to ensure that its bank messaging is secure. Combined with its cash management software in Saas mode, this solution provides an optimised system for centrally managing the Group’s cash on a day-to-day basis and for minimising financial risk by offering a fully integrated management solution for cash and payments. The Group monitors actual and forecast cash flows for each subsidiary on a daily basis for the Eurozone and on a monthly basis for other countries. These reviews cover the forecasts for the main cash flows related to operating, financing and investing activities. The Group has rolled out across the majority of its consolidated entities a web-based system for consolidation, reporting and cash flow analysis, which provides specific responses for highly operational issues, including: ● building and structuring processes for monitoring “sliding” and updated cash flow forecasting; ● standardising and simplifying the reporting and data collection processes; ● analysing, for a given period, gaps between actual and forecast figures; ● easily dealing with the other issues that arise as a result of the Group’s activities (cash pooling, inter-company transactions, multiple currencies, identification of cash and non-cash flows). Financial commitments Financial commitments – including off-balance sheet commitments – require prior approval. In addition, as part of the accounts closing process, the operating units are required to list all of the commitments they have given and received. Capital expenditure A capital expenditure authorisation procedure covering all capex categories is applicable to all Group subsidiaries. Given the Group’s business, these expenditures are limited and mainly concern computer The identification of acquisition targets and their pre-selection are generally initiated by the operations departments concerned and are then validated by the Group executive management team and the Finance Department. For large-scale acquisition targets, the process is initiated by the Group executive management team. Following the performance of operational, financial, HR, tax, legal and anti-corruption audits, aimed at ensuring the targets are compatible with the Group’s business model as well as reviewing their financial performance and identifying potential risks, acquisition proposals are presented to the Board of Directors for approval. Acquired companies are immediately integrated into the Group’s operational and management reporting process and, depending on their size, the Group’s information systems are deployed to guarantee the reliability of financial information. hardware and software. Acquisitions and disposals

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ASSYSTEM

REGISTRATION DOCUMENT 2018