Assystem - 2018 Register document


THE GROUP’S RESULTS Free cash flow and net debt For the twelve months ended 31 December 2018, free cash flow for Assystem’s full scope of consolidation amounted to €43.8 million, corresponding to 9.9% of revenue. This exceptionally high level was achieved thanks to: ● the receipt of €3.5 million on overdue invoices in Turkey; ● the receipt of a €7.5 million down payment on the K.A.CARE contract (although this positive cash impact will reverse in 2019). Assystem had net debt of €31.1 million at 31 December 2018 versus net cash of €23.9 million at 31 December 2017. This €55.0 million swing reflects the following: ● a €43.8 million positive effect from the free cash flow figure for the year; ● €60.7 million related to the Group’s additional investment in Expleo Group to participate in financing the acquisition of SQS; ● €4.8 million related to acquisitions of shares and purchased goodwill; ● a €15.1 million dividend payment to Assystem’s shareholders; ● €6.5 million for share buybacks and other movements in equity; ● €11.7 million in other movements, including €7.2 million in tax paid on the capital gain generated on the transfer of control of GPS and €3.4 million in costs paid for financial transactions carried out in 2017 (disposal of GPS, share buyback offer and acquisition of Framatome shares). OUTLOOK FOR 2019 In 2019, the Group expects to see further very solid like-for-like growth for Nuclear activities, which will be led, as in 2018, by operations in France, as well as by a faster pace of international business thanks to the contracts with K.A.CARE and Rosatom and the ramp-up of activities with the UAE-based operator, ENEC. In view of its strong second-half performance in 2018 and a favourable basis of comparison in the first six months of 2019, ET&I is also expected to deliver robust like-for-like growth. On a consolidated basis, the Group’s targets are as follows for 2019: ● approximately 10% growth in consolidated revenue, based on the scope of consolidation at 31 December 2018, with a much higher increase in the first half than the second in view of the bases of comparison with 2018; ● EBITA margin at least equal to the 2017 figure (which was 6.6% of 2017 consolidated revenue), with a marked rise in EBITA in both absolute value and percentage terms in first-half 2019 compared with first-half 2018; ● free cash flow representing more than 6% of revenue for the 24-month period covering fiscal 2018 and 2019 (excluding the impact of the first-time application of IFRS 16 as from 1 January 2019). 5.1.4 ● a significant improvement in DSO in France;

● the costs of dissynergies arising due to changes in the scope of consolidation, which shaved an estimated €1.5 million off the division’s full-year EBITA figure; ● management- and innovation-related investments made during the year to support the division’s growth, both in France and internationally. Staffing EBITA was more or less unchanged year on year, totalling €1.8 million versus €1.9 million in 2017. At 4.0% of revenue, this division’s EBITA margin remained satisfactory compared with the sector as a whole. The Group’s “Holding company” expenses, net of the EBITA of the activities classified in the “Other” category, had a €2.5 million negative impact on consolidated EBITA in 2018 versus a €3.8 million negative impact in 2017. Operating profit After taking into account €0.9 million in net non-recurring expense (€11.7 million net expense in 2017), consolidated operating profit came to €25.7 million in 2018 compared with €14.2 million in 2017. The contribution to Assystem’s consolidated profit by Expleo Group (“Expleo”, formerly Assystem Technologies Groupe) – in which Assystem holds a 38.2% interest – was €16.8 million before the impact of the non-recurring expenses recorded by Expleo for 2018. This contribution breaks down as €8.5 million for Assystem’s share of Expleo’s profit before non-recurring expenses and €8.3 million in coupons on convertible bonds. Assystem’s share of Expleo’s non-recurring expenses amounted to €14.7 million, including €4.4 million in acquisition costs (primarily related to SQS) and €10.3 million in costs incurred for adapting and restructuring Expleo’s operations. Consequently, after the impact of Assystem’s share of Expleo’s non-recurring expenses, Expleo’s contribution to Assystem’s consolidated profit for the period was €2.1 million (including a €6.2 million loss accounted for by the equity method). Financial income and expenses – Income tax Net financial expense and income tax expense came to €1.4 million and €6.2 million respectively. Profit for the period After deducting a €0.3 million loss from discontinued operations (corresponding to the residual costs incurred for the transfer of control of GPS), consolidated profit for the period amounted to €19.9 million, with €0.5 million attributable to non-controlling interests. Revenue generated by Expleo totalled €1,042.7 million in 2018 compared with €673.6 million in 2017. The 54.8% increase breaks down as 7.7% in like-for-like growth, a 47.5% positive impact from changes in scope of consolidation (chiefly due to the consolidation of SQS since February 2018) and a 0.5% negative currency effect. Expleo’s EBITDA stood at €99.0 million, representing 9.5% of its consolidated revenue, versus €59.3 million (2) and 8.8% respectively in 2017. INFORMATION ON THE REVENUE AND EBITDA (1) GENERATED IN 2018 BY EXPLEO


(1) EBITA before net depreciation expense and net additions to provisions for recurring operating items (expressed in absolute value terms). (2) Pro forma data, taking into account the full-year cost of the corporate structure put in place by Expleo to manage a stand-alone group. ASSYSTEM



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