Assystem - 2015 Registration Document

6

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

PROVISIONS AND CONTINGENT LIABILITIES

NOTE 20

Provisions

Reversals (unused provisions)

Reversals (used provisions)

Other movements

Beginning of year

Year-end

Additions

In millions of euros

Restructuring costs

2.1

–

(1.0)

(0.5)

(0.3)

0.3 6.8 0.2 7.3 1.0 1.0 2.9 2.1 7.0 1.0 1.3 9.7 2.3

Employee-related risks and tax risks

–

6.8 0.1 6.9 0.8 1.6 1.6 0.9 4.9 0.8 1.6 8.4 1.0

–

–

–

Other

0.2 2.3 1.2 2.5 2.6 3.4 9.7 1.2 4.6 2.6 3.6

(0.1) (1.1) (0.1) (3.4) (0.5)

(0.1) (0.6)

0.1

Total long-term provisions

(0.2)

Guarantees for fixed-fee projects and losses on completion

(0.8)

(0.1)

Restructuring costs

–

0.3

Employee-related risks and tax risks

(0.8) (2.2) (3.8) (0.8) (0.5) (0.8) (2.3) (4.4)

– –

Other

–

Total short-term provisions

(4.0)

0.2

Guarantees for fixed-fee projects and losses on completion

(0.1) (4.4) (0.5) (0.1) (5.1)

(0.1)

Restructuring costs

– –

Employee-related risks and tax risks

Other

0.1

TOTAL PROVISIONS

12.0

11.8

14.3

–

The year-on-year change in provisions for restructuring costs relates to the items in Note 31 – Non-recurring income and expenses.

Contingent liabilities

disputing the grounds of the reassessment in their entirety, based notably on the opinions of legal experts initially issued in 2014 and reiterated in late 2015. However the Group decided to set aside a provision in its 2015 financial statements representing 50% of the disputed amount ( i.e. €6.8 million), in view of changes in case law in 2015 related to similar disputes. The Group had already recognised a €2.0 million provision in its 2014 financial statements to cover the estimated costs of the procedure, but these costs were re-estimated at €0.5 million in 2015 and €1.5 million of the provision was therefore reversed. Nigeria In February 2016 a tax inspection carried out by the Nigerian tax authorities on MPH Nigeria was completed. The final tax reassessment notice has not yet been received, but the potential reassessed amounts are covered by provisions recognised in MPH Nigeria’s balance sheet when it was acquired by Assystem in 2012. At this stage of the procedure, the Group does not consider that any additional provisions need to be set aside. At the date these consolidated financial statements were approved for issue there were no other governmental, legal or arbitration proceedings (including any such proceedings that were pending or threatened of which it was aware), which may have, or have had in the past 12 months, significant effects on the financial position or profitability of the Company or the Group.

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 aboard a ship, the Acergy Falcon, which was dry-docked in Brest for maintenance at the time. The main development in this case in 2015 was that the court-appointed expert filed his assessment report, which stated that ASG was at fault in a number of respects and therefore that it is jointly liable for the occurrence and extent of the fire, although the degree of its liability was not quantified. Despite the findings of this report, 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 INSPECTIONS France

In late 2014 Assystem France received notification of a €13.5 million tax reassessment relating to research tax credits. 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

108

ASSYSTEM

FINANCIAL REPORT 2015