Assystem - Registration Document 2016

6

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

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

Effect of wchanges in scope of consolidation

Currency translation differences

Change in fair value

Other movements

31 Dec. 2016

1 Jan. 2016

Increases

Repayments

In millions of euros Bank borrowings

–

– – –

–

–

– –

0.3

– – – – –

0.3 4.1

Sundry financial liabilities Fair value of derivatives

4.5 2.1 6.6 0.5 1.7 2.2 0.5 6.2 2.1 8.8

(0.6)

0.2

– –

–

–

(2.1)

–

Total non-current financial liabilities

–

(0.6) (0.1) (0.1) (0.2) (0.1) (0.7)

0.2

(2.1)

0.3 0.1 2.4 2.5 0.4 2.4

4.4

Bank borrowings

80.0

– – – –

–

80.5

Sundry financial liabilities Total current financial liabilities

–

1.0

(2.8)

2.2

80.0 80.0

1.0

(2.8)

82.7 80.8

Bank borrowings

–

–

Sundry financial liabilities Fair value of derivatives

– –

0.2

1.0

(2.8)

6.3

–

–

(2.1) (1.1)

–

–

–

Total

80.0

(0.8)

0.2

2.8

(2.8)

87.1

Other movements in “Sundry financial liabilities” primarily reflected: ● the takeover by the Company of a €2.2 million shareholder’s loan in connection with the acquisition of Aerotec in the GPS division (see Note 3.2 – Business combinations); ● the payment of €1.1 million in coupons on the Ornane bonds, for which a provision had been recognised at 31 December 2015.

The buybacks of the Odirnane bonds were partly financed by drawing down a net €80 million under the Group’s revolving credit facility. In January 2017 Assystem entered into a new €280 million financing arrangement with a pool of banks, comprising an €80 million term loan and a €200 million revolving credit facility (see Note 14 – Significant events after the reporting date). Consequently, the drawdown on the revolving credit facility included in “Other short-term debt and current financial liabilities” at 31 December 2016 was repaid in early 2017.

8.3 Derivative instruments

The Group uses derivative instruments to manage and reduce its exposure to changes in interest rates and foreign exchange rates. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured at fair value at each reporting date. The method of recognising the resulting fair value gains or losses depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the hedged item. On inception of a hedge, the Group documents the relationship between the hedged item and the hedging instrument. The Group also documents its estimates both on inception and prospectively to determine the effectiveness of the hedge in offsetting changes in fair value or cash flows attributable to the hedged risk. FAIR VALUE HEDGES Fair value hedges are used to hedge the Group’s exposure to changes in fair value of a recognised asset or liability (or an identified portion of such an asset or liability) or a firm commitment to purchase or sell an asset at a pre-defined price, that is attributable to a particular risk and could affect profit. Changes in fair value are recognised in the income statement.

110

ASSYSTEM

REGISTRATION DOCUMENT 2016