Assystem - Registration Document 2016

MANAGEMENT REPORT

GROUP RESULTS

3.2.3

RESULTS OF OPERATIONS AND FINANCIAL POSITION

3.2.3.1 Operating profit before non-recurring items (EBITA) Consolidated EBITA advanced 15.7% to €66.9 million in 2016 from €57.8 million the previous year, and EBITA margin represented 7.0% of revenue, up 0.6 of a point on the 6.4% recorded for 2015.

EBITA*

2016 66.9 47.0 24.1

% of revenue

2015 57.8 38.8 25.7

% of revenue

In millions of euros

Group

7.0% 8.1% 7.6% 4.6%

6.4% 7.3% 8.3% 2.3%

Global Product Solutions Energy & Infrastructure

Staffing

2.4

1.4

Holding company and Other

(6.6)

–

(8.1)

–

3

* Operating profit before non-recurring items (EBITA) including share of profit of equity-accounted investees (€1.4 million in 2016 and €0.5 million in 2015).

Non-recurring income and expenses represented a net expense of €13.5 million in 2016, breaking down as: ● a €7.0 million impairment loss recognised for assets used by the Staffing business; ● a €3.0 million net expense related to acquisitions and disposals and awards of free shares and performance shares. 3.2.3.3 Financial income and expenses In 2016 the Group recorded net financial expense of €3.6 million compared with net financial income of €1.0 million in 2015. This year-on-year negative swing was mainly due to (i) €2.2 million in financial expenses recognised in relation to the buybacks of Ornane bonds and (ii) fluctuations in exchange rates. 3.2.3.4 Profit for the period Excluding the impact of goodwill impairment, the effective tax rate for the year was 31.95 and the Group’s income tax expense came to €17.7 million. Consolidated profit for the period amounted to €32.1 million, of which €0.6 million was attributable to non-controlling interests (compared with €27.9 million and €0.7 million respectively in 2015). ● €3.5 million in restructuring costs; and

Global Product Solutions EBITA rose by €8.2 million to €47.0 million, representing an EBITA margin of 8.1% versus 7.3% in 2015. Both the Aerospace and Automotive sectors saw a sharp increase in their EBITA and EBITA margin figures. EBITA for the Energy & Infrastructure division contracted by €1.6 million to €24.1 million, representing an EBITA margin of 7.6% compared with 8.3%. Radicon’s contribution to EBITA was a negative €1.2 million, versus a positive €3.7 million in 2015. Excluding Radicon, Energy & Infrastructure EBITA increased by €3.3 million to €25.3 million, representing an EBITA margin of 8.5% versus 7.8% in 2015. Staffing EBITA came to €2.4 million compared with €1.4 million in 2015, and EBITA margin rose to 4.6% from 2.3%. These year-on-year increases stemmed from a reduction in the business’s cost base and the collection of receivables that had previously been written down as bad debt. The Group’s “Holding company” expenses, net of the results of the activities classified in the “Other” category, amounted to €6.6 million in 2016 (€8.1 million in 2015). 3.2.3.2 Operating profit After deducting the net non-recurring expense for the year, consolidated operating profit came to €53.4 million.

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ASSYSTEM

REGISTRATION DOCUMENT 2016