Assystem - 2015 Registration Document

REPORTS OF THE BOARD OF DIRECTORS

REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS

● analysing, for a given period, gaps between actual and forecast figures; ● easily dealing with the other issues that arise from the Group’s activities (cash pooling, inter-company transactions, multiple currencies, identification of cash and non-cash flows). Financial commitments Financial commitments – including off-balance sheet commitments – require prior approval. In addition, as part of the accounts closure process, the operating units are required to list all of the commitments they have given and received. Capital expenditure A capital expenditure authorisation procedure covering all capex categories is applicable to all Group subsidiaries. Given the Group’s business, these expenditures are limited and mainly concern computer hardware and software. Insurance The list of insurable risks and the risk coverage policy are managed by the Group Legal Affairs Department. Assystem’s Human Resources Department is responsible for overseeing the specific insurance programmes applicable to employee expatriation assignments (to and from France). Entities held by MPH Global Services SAS and which operate in the Middle East and Africa have their own insurance programme for their expatriation assignments. Legal disputes Legal disputes involving Assystem SA and its subsidiaries are monitored and reported on a continuous basis by the Group’s Legal Affairs Department in conjunction with legal experts within the operating divisions and/or countries. The financial impact of legal disputes is analysed by the finance directors of each operating division and if In 2015, the Corporate Legal Affairs Department deployed the Enablon software for managing its subsidiaries and equity interests in France, Germany, Spain, UK and the Middle East, enabling it to: ● set up a cross-functional and centralised management system for holdings and subsidiaries, covering financial, legal, accounting and tax issues; ● possess software with an integrated data security function; ● introduce a fast, reliable and powerful tool, which can support the Group’s international growth strategy and deal with the increasing complexity of its operations, made available to all support functions (consolidation, accounting, cash management, tax, country-level finance directors, legal experts, etc.). required by the Group’s Finance Department. Legal management of subsidiaries and equity interests

Consolidation The Group’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), based on accounting data prepared under the responsibility of the heads of its operating units. Points of particular significance for the Group are dealt with centrally. For example, the Group Finance Department reviews the accounting processing of disposals and acquisitions and the regular tests carried out on the value of the Company’s assets. Accounting The Group Finance Department coordinates the accounts closure processes and sends out any necessary memorandums and instructions to all consolidated entities. In addition, it meets regularly with the Statutory Auditors in order to present specific and significant transactions carried out during the year and the accounting options selected. Financing and cash management The Group has put in place a centralised management system for cash and investments, via a cash pool set up for entities in Eurozone countries and has implemented other cash centralisation procedures for the other entities. The Board of Directors defines the cash management policy on a yearly basis with the overall aim of guaranteeing the liquidity and security of investments. Currency and interest rate hedges as well as the counterparties for these hedges are centralised at the level of Assystem SA. The number of banks used for these instruments is limited. The Group has chosen Swift Net to ensure that its financial messaging is secure. Combined with its cash management software in Saas mode, this solution provides an optimised system for centrally managing the Group’s cash on a day-to-day basis and for minimising financial risk by offering a fully integrated management solution for cash and payments. The Group monitors real and forecast cash flows for each subsidiary on a monthly basis, in France and in other countries. These reviews cover the forecasts for the main cash flows related to operating, financing and investing activities. In 2015, the Group deployed a web-based system for cash flow consolidation, reporting and analysis for most of the Group’s consolidated entities, which provides specific responses for highly operational issues: ● building and structuring processes for monitoring “sliding” and updated cash flow forecasting; ● standardising and simplifying the reporting and data collection processes;

8

179

ASSYSTEM

FINANCIAL REPORT 2015