Assystem - Registration Document 2016

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

8.6 Financial risk management The Group’s financial risk management policy is described in detail in Chapter 5 – Risk factors. This note sets out the figures related to financial risk management.

EXPOSURE TO RISKS RELATED TO THE TRANSLATION INTO EUROS OF THE FINANCIAL STATEMENTS OF FOREIGN SUBSIDIARIES DENOMINATED IN LOCAL CURRENCY The Group is exposed to risks related to the translation into euros of the financial statements of foreign subsidiaries denominated in local currency. These risks mainly concern the EUR/GBP, EUR/USD, EUR/NGN and EUR/SAR exchange rates (at the date of this Registration Document, the SAR was pegged to the USD at a fixed rate). The Group’s main risk exposure in this respect concerns the translation into euros of financial statements denominated in GBP. The net assets of UK subsidiaries denominated in GBP are set out in the table below.

In millions of GBP Non-current assets

9.9

Current assets Total assets

36.7 46.6

Non-current liabilities Current liabilities Total liabilities

1.7

15.8 17.5 29.1

Net assets

The year-on-year change in the GBP/EUR exchange rate was as follows:

Year-on-year change (%)

1 GBP = x EUR

2016

2015

Year-end exchange rate

1.1679

1.3625

(14%)

RESIDUAL CONTRACTUAL MATURITIES The residual contractual maturities of the Group’s financial liabilities break down as follows (including interest payments). The contractual cash flows presented – which cover coupons, interest payments and redemptions/repayments – have not been discounted.

Carrying amount at 31/12/2016

Contractual cash flows

Due within 1 year

Due in 1-5 years

Due beyond 5 years

In millions of euros

6

Bond debt

14.4 80.8

14.4 80.8

14.4 80.5

–

– –

Bank borrowings

0.3 2.7 8.7 5.9

Sundry financial liabilities

6.3

6.5

2.2 4.4

1.6

Current and non-current liabilities related to share acquisitions

18.5

32.6

19.5

Other non-current liabilities

5.9

9.6

–

3.7

Trade payables

66.4 10.1

66.4 10.1 44.4

66.4 10.1 19.4

– –

– –

Other current liabilities (1)

–

24.3 41.9

0.7

Operating leases (2)

Total contractual obligations

202.4

264.8

197.4

25.5

(1) Excluding accrued taxes and payroll costs and deferred income. (2) Off-balance sheet commitments.

EARLY REPAYMENT RISKS ARISING FROM COVENANTS The new financing set up to replace the Group’s revolving credit facility contains a covenant based on the consolidated gearing ratio (consolidated net debt at the test date/EBITDA for the past 12 months as adjusted for acquisitions and divestments). This ratio is measured at the end of each half-year period (with the first test taking place at 31 December 2016), and must not exceed 2.75 at end-December and 3.0 at end-June. If the covenant is breached, a qualified majority of lenders (representing at least two thirds of the lending commitments) may demand early repayment of the corresponding borrowings. At 31 December 2016, the Group’s gearing ratio was below the ceiling specified in the covenant.

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ASSYSTEM

REGISTRATION DOCUMENT 2016