Assystem - Registration Document 2016

6

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

PROVISIONS AND CONTINGENT LIABILITIES

NOTE 9

In accordance with IAS 37, a provision is recorded when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the obligation can be measured reliably. Where the effect of the time value of money is material, provisions are discounted using a discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a financial expense.

9.1 Provisions

Reversals (used provisions)

Reversals (unused provisions)

Other movements 31/12/2016

01/01/2016 Additions

In millions of euros Restructuring costs

0.3 6.8 0.2 7.3 1.0 1.0 2.9 2.1 7.0 1.0 1.3 9.7 2.3

– –

– – – –

– – – –

(0.2)

0.1 7.3 0.2 7.6 0.6 0.4 3.2 3.0 7.2 0.6 0.5

Employee-related risks and tax risks

0.5

Other

0.1 0.1 0.6 1.3 1.5 1.8 5.2 0.6 1.3 1.5 1.9 5.3

(0.1) 0.2

Total long-term provisions

Guarantees for fixed-fee projects and losses on completion

(0.2) (1.7) (1.1) (0.3) (3.3) (0.2) (1.7) (1.1) (0.3) (3.3)

(0.8) (0.4) (0.6) (0.7) (2.5) (0.8) (0.4) (0.6) (0.7) (2.5)

–

Restructuring costs

0.2 0.5 0.1 0.8

Employee-related risks and tax risks

Other

Total short-term provisions

Guarantees for fixed-fee projects and losses on completion

– –

Restructuring costs

Employee-related risks and tax risks

1.0

10.5

Other

–

3.2

Total provisions

14.3

1.0

14.8

9.2 Contingent liabilities

TAX AUDIT France

ASG LEGAL DISPUTE ASG is involved in a legal dispute with Acergy (since renamed Subsea 7) and Iska Marine concerning a fire that occurred in January 2010 on board a ship – the Acergy Falcon – which was dry-docked in Brest for maintenance at the time. There were no significant developments in this case during 2016. The only noteworthy facts during the year were of a procedural nature as the proceedings concerning the merits of the case were re-listed with the Brest Commercial Court, which ordered that all of the pending cases related to this same incident should be joined and heard together. As in prior periods, Assystem still considers that there is no evidence that ASG was at fault or that it will necessarily be held fully or partially liable. In addition, as in previous periods, the Group confirms that in the event ASG is held liable, this claim would be covered under the Group’s third-party liability insurance policies.

In late 2014 Assystem France received notification of a €13.5 million tax reassessment relating to research tax credits. Assystem considers that this reassessment is based on a general position taken by the French tax authorities which is applicable to all of the French companies concerned. Assystem is contesting the grounds of the reassessment in their entirety. However, in view of new case law in 2015, and based on the opinions of legal experts, the Group set aside a €7.3 million provision in its 2015 financial statements. At 31 December 2016 Assystem had not yet received a payment notice from the tax authorities for the reassessed amount and the valuation of the related risk was unchanged compared with 31 December 2015. At the date this Registration Document was filed, the Company was not aware of any other governmental, legal or arbitration proceedings (including any pending or potential proceedings), that could have, or have had in the last 12 months, a significant impact on the financial situation or profitability of the Company or the Group.

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ASSYSTEM

REGISTRATION DOCUMENT 2016