Assystem - Registration Document 2016

5

RISK FACTORS

INDUSTRIAL AND ENVIRONMENTAL RISKS

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.

TAX AUDIT

France 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.

5.7 INDUSTRIAL AND ENVIRONMENTAL RISKS

Due to the nature of its activities, the Group has no significant direct impact on the environment. In the nuclear sector, the Group provides only knowledge-based services and is not authorised to operate any

nuclear facilities as defined in the applicable regulations. The Group’s environmental policy and measures are described in Chapter 4 of this Registration Document on Corporate Social Responsibility (CSR).

5.8 RISKS RELATED TO ACQUISITIONS

Type

Impact

Risk reduction measures

Risk that acquired companies may not generate operating profit in line with the Group’s objectives and expectations.

Dilutive effect on gross margins and operating profit. Group profitability/ performance objectives not met.

A post-acquisition support plan is drawn up for companies that are newly acquired by the Group. One of Assystem’s priorities after acquiring a company is to implement the Group’s reporting systems so that it can rapidly monitor changes in results and generation of cash flow and take any appropriate corrective measures.

The Group has not identified any other significant risks to date.

76

ASSYSTEM

REGISTRATION DOCUMENT 2016