Assystem - Registration Document 2016

6

ÉTATS FINANCIERS

PARENT COMPANY FINANCIAL STATEMENTS

PROVISIONS

NOTE 5

Amount at beginning of year

Amount at year-end

Increases

Decreases

In thousands of euros

Provisions for foreign exchange losses

902

3,567

902 836

3,567

1,039 1,941

13,948 17,515

14,151 17,718

Other provisions for contingencies and charges (1) Total provisions for contingencies and charges Provisions for impairment in value of intangible assets Provisions for impairment in value of property, plant and equipment

1,738

28

– –

–

28

188

2

186

20,084

13,280

10,734

22,630

Provisions for shares in subsidiaries and affiliates (2)

1,891

– –

1,891

– –

Provisions for loans (3)

Provisions for treasury shares

–

–

Sub-total: Provisions for fixed assets

22,191

13,280

12,627

22,844

Provisions for impairment in value of trade receivables Provisions for impairment in value of intra-Group receivables (4) Provisions for impairment in value of sundry debtors (5)

199 406 391 996

–

199

–

432

–

838

–

391 590

–

Sub-total: Provisions for current assets

432

838

Total provisions for impairment in value

23,187 25,128

13,712 31,227

13,217 14,955

23,682 41,400

Total provisions

(1) Additions to and reversals of provisions for contingencies and charges in 2016 break down as follows: • a €7.3 million addition to provisions for tax risks. On 30 December 2016, Assystem SA and Assystem France signed a framework agreement relating to research tax credits for the years 2010 to 2016. This agreement provided for Assystem SA to assume all of the financial risks and the risks relating to any other disputes arising in relation to these research tax credits, effective from 31 December 2016. Consequently, Assystem SA has undertaken to assume all of the related financial consequences and has waived any related rights of recourse against Assystem France with regard to claiming compensation, which it would be entitled to do in the event of any dispute. As consideration for this waiver of potential compensation, on 31 December 2016 Assystem France paid to Assystem SA an initial indemnity of €7.3 million (which may be subsequently increased by a further €5.0 million). This amount was recorded as income for 2016. In parallel, Assystem SA recorded a €7.3 million provision for contingencies and charges on the liabilities side of its balance sheet; • a €6,631 thousand addition concerning the costs that the Company will incur as a result of its outstanding free share/performance share plans (of which €6,536 thousand will be rebilled to the Group subsidiaries whose employees are beneficiaries under these plans); • an €836 thousand reversal concerning the costs incurred by the Company during 2016 for shares delivered under free share plans; • a €67 thousand addition to provisions for risks relating to subsidiaries concerning Assystem Italy. (2) The main additions to provisions for shares in subsidiaries and affiliates concerned the following companies: • ASG: €56 thousand; • ASM Technologies: €226 thousand; • Silver Atena UK Ltd: €12,985 thousand. Reversals of provisions for shares in subsidiaries and affiliates related to the following companies: • Extra Capital: €632 thousand, following this company’s liquidation; • Assystem Iberia: €7,712 thousand; • Assystem Portugal: €505 thousand; • Assystem Canada: €1,435 thousand; • Assystem International: €438 thousand; • ATIM: €12 thousand. (3) The provision recognised previously to write down a loan to a Canadian subsidiary was reversed in full in 2016 following this company’s liquidation. (4) Additions to provisions for impairment of intra-Group receivables concerned the following companies in 2016: • Assystem Solutions DMCC (€386 thousand); • Assystem Australia (€46 thousand). (5) This provision reversal concerns dividends not received from a Moroccan subsidiary as the receivable owed to the Company was used to increase this subsidiary’s capital during the year.

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ASSYSTEM

REGISTRATION DOCUMENT 2016