Assystem - Registration Document 2016

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

CASH FLOW HEDGES A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a

recognised asset or liability or a highly probable forecast transaction and could affect profit. The Group applies cash flow hedge accounting when the following conditions are met:

● there is formal designation and documentation of the hedging relationship;

● the hedge is highly effective; and

● the forecast transaction that is the subject of the hedge is highly probable and presents an exposure to variations in cash flows that could ultimately affect profit. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income and the ineffective portion is recognised in the income statement. If the hedging instrument expires, or is sold, cancelled or exercised, the gain or loss initially recognised in other comprehensive income continues to be recorded separately in other comprehensive income until the forecast transaction occurs. If the commitment no longer exists or the forecast transaction is no longer expected to occur, any related cumulative gain or loss on the hedging instrument that had been recognised directly in other comprehensive income is reclassified to profit.

term debt and current financial liabilities” (compared with a positive €0.2 million recorded under “Other current assets” at 31 December 2015). The application of hedge accounting to these derivatives resulted in the recognition of a €1.0 million fair value loss in other comprehensive income in 2016.

CURRENCY DERIVATIVES During 2016 the Group pursued its currency hedging strategy (see Section 5.3 – Liquidity and market risk, in Chapter 5 of this Registration Document) by setting up new hedges comprising currency forwards and swaps. At 31 December 2016, the Group’s currency derivatives had a negative fair value of €0.8 million, which was recorded under “Other short-

8.4 Net debt

Cash and debt consist of (i) cash and cash equivalents and current and non-current derivatives (included in other financial assets) on the assets side of the statement of financial position, and (ii) bond debt, other debt and financial liabilities, and the fair value of derivatives on the liabilities side.

6

Net debt corresponds to gross debt (bond debt, other long- and short-term debt and current and non-current financial liabilities and derivatives recorded under current and non-current liabilities) less cash and cash equivalents and derivatives recorded under current and non-current assets. Net debt breaks down as follows:

Maturity schedule

At 31 December 2016

Beyond 5 years

2018

2019

2020

2021

2017 14.4 80.5 97.1 85.4 85.4 11.7 2.2

In millions of euros

Bond debt

14.4 80.8

–

– –

– –

– –

– –

Bank borrowings

0.3 0.7 1.0

Sundry financial liabilities

6.3

0.6 0.6

0.6 0.6

0.6 0.6

1.6 1.6

Gross debt

101.5

Cash and cash equivalents

85.4

–

–

–

–

–

Cash, cash equivalents and derivatives recorded under assets

85.4 16.1

–

–

–

–

–

Net debt

1.0

0.6

0.6

0.6

1.6

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ASSYSTEM

REGISTRATION DOCUMENT 2016