Assystem - Registration Document 2016

3

MANAGEMENT REPORT

GROUP RESULTS

3.2.3.5 Net cash/debt The Group had net debt of €16.1 million at 31 December 2016, versus net cash of €198.8 million one year earlier. The majority of the year- on-year change was due to the fact that in 2016 the Company bought back 91.2% of its Odirnane bonds and reclassified under financial liabilities the Odirnane bonds that were still outstanding at 31 December 2016. An analysis of the year-on-year change is provided in the table below:

In millions of euros Net cash/(debt) at 31 December 2015

198.8

EBITDA

75.7 (3.4)

Change in operating working capital requirement

Income tax paid

(12.8)

Net capex

(8.4) (5.8) 45.3

Other movements Free cash flow

Acquisitions of shares in consolidated companies, net of sales Buybacks/reclassifications of Odirnane and Ornane bonds

(26.4)

(195.1) (38.7) (16.1)

Dividends, share buybacks and other

Net cash/(debt) at 31 December 2016

3.2.5

SIGNIFICANT EVENTS AFTER THE REPORTING DATE

Consolidated free cash flow amounted to €45.3 million, versus €44.8 million in 2015. Excluding the one-off impact of a change in the rules for paying certain payroll taxes in France, it came to €50.3 million, representing 5.3% of revenue and 75% of EBITA. DSO was unchanged at 78 days, following a 5-day reduction in 2015. In January 2017, the Group entered into a new bank financing arrangement (see Section 3.2.5 below) under financial and contractual conditions that reflect the current liquidity of the bank lending market. OUTLOOK FOR 2017 In view of the favourable market trends in the Automotive, Aerospace and Nuclear sectors, Assystem has set itself the following targets for 2017: ● for organic revenue growth at constant exchange rates to be at least the same as in 2016; 3.2.4

On 24 January 2017 Assystem entered into a new €280 million financing arrangement with a banking pool, comprising an €80 million term loan redeemable at maturity in January 2022 and a €200 million five-year revolving credit facility with two one-year extension options (subject to the lenders’ agreement). Consequently, the €80 million drawn down under the previous revolving credit facility that was included in short-term debt at 31 December 2016 has been repaid. The new financing agreement includes a covenant, the details of which are provided in Note 8.6 to the consolidated financial statements – Financial risk management, in Chapter 6 of this Registration Document. The Odirnane bonds that remained outstanding at 31 December 2016 (representing 8.8% of the original issue) have been redeemed in full in cash, without any Assystem shares allocated to their holders. The amount of the redemption, including accrued coupons, was €14.35 million, which was paid between late February and 6 March 2017.

● a further increase in EBITA margin;

● free cash flow representing more than 5% of revenue.

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ASSYSTEM

REGISTRATION DOCUMENT 2016