Assystem - Registration Document 2016

6

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

The cash flows relating to the acquisitions can be analysed as follows:

GPS 4.2

E&I 4.6

Total

In millions of euros

Cash and cash equivalents

8.8

Bank overdrafts

–

(0.1) 4.5

(0.1) 8.7

Net cash acquired

4.2

Purchase price of the companies’ shares

(13.0)

(17.9)

(30.9)

Shareholder’s loans granted

(2.2) (1.4)

–

(2.2) (2.2)

Other cash flows

(0.8)

Net cash outflow

(12.4)

(14.2)

(26.6)

In accordance with IFRS 3R, the Group will complete the initial accounting for the acquisitions carried out in 2016 within one year of the dates it acquired control of the companies concerned. Cash flows related to acquisitions of shares in consolidated companies were as follows in 2016 and 2015:

2016 (12.4) (14.2)

2015 (0.4) (28.5)

In millions of euros GPS acquisitions E&I acquisitions Staffing acquisitions

– –

(5.8) (0.1)

Acquisition of available-for-sale financial assets

Acquisitions of shares in consolidated companies

(26.6)

(34.8)

3.3 Goodwill

In accordance with IFRS 3R, goodwill is not amortised but is tested for impairment at least once a year. For the purpose of impairment testing, goodwill is allocated to cash-generating units (CGUs) or groups of CGUs. A CGU corresponds to the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The level of CGU used for goodwill impairment tests depends on the characteristics of the business or market of each operation. The Group carries out impairment tests at each year-end and whenever there is an indication of impairment in order to estimate the CGU’s recoverable amount. Recoverable amount corresponds to the higher of the CGU’s fair value less costs of disposal and its value in use (the present value of the future cash flows expected to be derived from the CGU). When the recoverable amount of a CGU is less than its carrying amount, an impairment loss is recognised and is deducted to the extent possible from the carrying amount of the goodwill allocated to the CGU. If a subsidiary is sold, the goodwill allocated to that subsidiary is taken into account in determining the proceeds of the sale. Goodwill arising on the acquisition of fully-consolidated companies is presented in a separate line of the financial statements. Goodwill related to equity-accounted investees is shown in “Equity-accounted investees”.

The Group’s three operating segments are as follows: Global Product Solutions (outsourced R&D); Energy & Infrastructure (complex infrastructure engineering);·Staffing (worldwide assignment of consultants specialised in Oil & Gas and other industrial sectors). These three segments correspond to the three cash-generating units (CGUs) that are used by the Group and which comply with the IFRS definition of CGUs.

2015

2016

Accumulated impairment

Effect of changes in scope of consolidation

Impairment losses recognised during the year

Currency translation differences

Carrying amount

losses at year-end

Carrying amount

In millions of euros

Global Product Solutions Energy & Infrastructure

94.5 39.6 13.1

19.1 27.7

– –

(0.8) (1.4)

112.8

11.6

65.9

5.0

Staffing

–

(7.0) (7.0)

–

6.1

14.0 30.6

Total

147.2

46.8

(2.2)

184.8

92

ASSYSTEM

REGISTRATION DOCUMENT 2016