Assystem - Registration Document 2016

6

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

Deferred taxes Deferred tax assets are recognised for the carryforward of unused tax losses and unused tax credits and deductible temporary differences only to the extent that it is probable that the Company and its subsidiary(ies) concerned will have sufficient future taxable profit against which the unused tax losses, tax credits and temporary differences can be utilised. In assessing whether it will have sufficient future taxable profit to recover deferred tax assets the Group takes into account forecasts of future taxable profits, non-recurring expenses included in past losses and which will not be incurred again in the future, and its past history of taxable profit for prior years.

Figures for deferred taxes related to unused tax losses and temporary differences are presented in Note 12.3 – Deferred taxes. Goodwill impairment The estimates used in the assumptions for calculating goodwill impairment are set out in Note 3.4 – Goodwill impairment testing. Employee benefit obligations The estimates used in the assumptions for calculating employee benefit obligations and the related sensitivity analyses are set out in Note 5.3.2 – Employee benefit obligations.

SIGNIFICANT EVENTS OF THE YEAR

NOTE 2

Buyback of perpetual bonds redeemable in cash and/or in new and/or existing shares (“Odirnane bonds”) and subsequent repurchase procedure Through successive buybacks carried out in the second half of 2016, the Group redeemed 5,111,972 Odirnane bonds for a total amount of €176.9 million (including accrued coupons and transaction costs). At 31 December 2016 490,268 Odirnane bonds remained outstanding, representing 8.8% of the original issue. These bonds were redeemed in advance of maturity between late February and 6 March 2017 for an aggregate €14.35 million (see Note 14 – Significant events after the reporting date). The Odirnane bonds still outstanding at 31 December 2016 – representing an aggregate of €14.3 million including accrued coupons – have been reclassified from “Equity instruments” to “Short-term bond debt” in the consolidated statement of financial position. External growth The Group pursued its French and international external growth drive in 2016 – in both the Global Product Solutions and Energy & Infrastructure divisions – enabling it to broaden its client portfolio and gain specific skills in a number of different markets. See Note 3.2 – Business combinations for a description of the acquisitions carried out during the year.

The following significant events took place in 2016:

Buyback of bonds redeemable in cash and/or in new and/or existing shares with a maturity date of 1 January 2017 (“Ornane 2017 bonds”) and subsequent repurchase procedure During the first half of 2016, Assystem bought back a total of 1,230,764 of its Ornane 2017 bonds for €31.5 million (excluding accrued coupons), representing 29% of the Ornane 2017 bonds issued in July 2011. The aggregate face value of the Ornane bonds bought back amounted to €27.1 million. The following financial expenses were recognised by the Group in relation to these buybacks: ● €0.8 million recorded under “Other financial income and expenses”, corresponding to accelerated amortisation of the Ornane bond arrangement fees; ● €2.2 million representing the difference between the redemption value (excluding accrued coupons) and the fair value of the Ornane bonds at 31 December 2015. At 31 December 2016, 3,757 Ornane bonds remained outstanding, representing an aggregate value of €0.1 million. They were recognised in “Short-term bond debt” in the consolidated statement of financial position.

88

ASSYSTEM

REGISTRATION DOCUMENT 2016